ISLAMABAD — The United Arab Emirates has reportedly pressed Pakistan to repay a $3.5 billion deposit previously placed in the country’s central bank, prompting swift financial support from Saudi Arabia and Qatar to help stabilize Pakistan’s economy.
The funds from Abu Dhabi had been deposited earlier as a loan to bolster Pakistan’s foreign exchange reserves at a time when the country faced a severe balance-of-payments crisis and the risk of depleting its الدولار reserves.
However, recent pressure from the UAE for repayment has raised concerns over potential strain on Pakistan’s already fragile financial position.
In response, Saudi Arabia and Qatar have moved to inject a combined $5 billion into Pakistan’s central bank, according to reports carried by Anadolu Agency.
Unlike the UAE deposit, the new funds are not structured as a loan but are intended to support economic stability and strengthen Pakistan’s foreign currency reserves, easing immediate repayment pressures.
Economic analysts say the intervention by Riyadh and Doha reflects broader Gulf cooperation in maintaining financial stability in key partner countries, particularly amid ongoing global economic uncertainty.
The additional inflows are expected to give Islamabad breathing space to meet its financial obligations, including the repayment requested by the UAE, without triggering further economic disruption or currency volatility.
Pakistan has in recent years relied heavily on financial assistance from Gulf allies and international institutions to navigate recurring economic challenges, including high external debt, inflationary pressures, and declining reserves.
Officials in Islamabad have not yet publicly detailed the repayment timeline or the specific terms of the new financial support.
The development underscores Pakistan’s continued dependence on external backing as it works to stabilize its economy and restore investor confidence.
