The government has decided to repay an additional $1 billion to the United Arab Emirates (UAE) as part of its external financing obligations, according to official sources.

Sources said Pakistan is scheduled to make the payment tomorrow, bringing total repayments to the UAE to $3.5 billion, as the country has already returned $2.5 billion in earlier payments.

Pakistan had originally secured $2 billion in deposits from the UAE in 2018, followed by another $1 billion deposit arrangement in 2023 aimed at supporting foreign exchange reserves.

Despite the sizable repayment, State Bank of Pakistan sources said the country’s foreign exchange reserves are not expected to face pressure. Officials noted that Pakistan recently received $3 billion from Saudi Arabia, helping stabilize reserve levels ahead of the repayment.