Pakistan has repaid its total debt of $3.45 billion to the United Arab Emirates, the country's central bank announced on Friday.
The State Bank of Pakistan (SBP) confirmed the repayment in a social media post, stating that the transaction was completed on Thursday.
The repayment came in two tranches, with $1 billion repaid on April 23 and $2.45 billion repaid last week.
The funds were part of external financing support extended by the UAE in 2019 to help stabilize Pakistan's balance of payments.
The repayment comes days after Pakistan received a $3 billion financial aid from Saudi Arabia.
Analysts have noted that external financing risks remain a key vulnerability for Pakistan, particularly amid volatile energy prices and constrained global capital markets.