Karachi – The State Bank of Pakistan confirmed on Friday that Pakistan has returned all $3.45 billion in deposits due to the United Arab Emirates (UAE). According to the central bank, $1 billion was paid to the Abu Dhabi Fund for Development on April 23, while the remaining $2.45 billion was paid last week.
Government officials say the decision has been taken to maintain the country’s “national dignity”, even though it will put a strain on the country’s foreign exchange reserves. It may be recalled that in March, Pakistan and the UAE failed to agree on a rollover (extension of the period) of this facility, which was the first failure of its kind in the last seven years.
Experts believe that this loan repayment was necessary to send a message to international financial institutions and friendly countries that Pakistan is fully capable of meeting its financial obligations.
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