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Pakistan has repaid roughly $3.5bn to the United Arab Emirates.
The UAE unexpectedly demanded immediate repayment of $3.5bn, straining Pakistan's forex reserves.
KEY POINTS
- Abu Dhabi's move reflected frustration with Pakistan's neutrality during the US-Israel-Iran conflict.
- Pakistan's repayment risked undermining IMF reserve targets unless offset by new external inflows.
- Saudi Arabia provided $3bn in new deposits and extended a $5bn facility to support Pakistan.
- Saudi-Emirati tensions and Pakistan's alignment with Riyadh influenced the UAE's decision.
COMPANIES
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