Overview
- The central bank said it sent $1 billion to the Abu Dhabi Fund for Development on April 23, completing $3.45 billion after $2.45 billion went back last week.
- Officials said Pakistan used fresh Saudi inflows to make the transfers, and the finance minister said Riyadh pledged about $3 billion more and extended a $5 billion deposit for three years.
- Analysts warned the outflows and interest costs near 6% could widen the external financing gap and strain foreign reserves that recently stood near $15 billion.
- The repayments followed a $1.43 billion Eurobond redemption on April 8 and come under a $7 billion IMF program that targets roughly $18 billion in reserves by June.
- The UAE had rolled over these deposits since 2018, but Pakistan failed to secure another rollover in March, pushing Islamabad to settle the balances and consider Eurobonds, sukuk, and commercial bank loans as replacements.