The State Bank said that Pakistan is giving back $2 billion to the UAE.

The State Bank of Pakistan (SBP) has verified that the government has paid back $2 billion to the United Arab Emirates (UAE). This is a big step forward in the two countries’ continuous efforts to manage their external debt.

A representative for the SBP said on Saturday that the money had been put with the central bank as a safe deposit before it was returned. The revelation comes at a time when Pakistan is dealing with a lot of external financial issues, including its debts to friendly countries and international financial instruments.

The UAE wanted $3.5 billion back from Pakistan, and the reimbursement is part of a bigger promise. Now that the $2 billion payment has been made, there is still a $1.5 billion payment due on April 23. This keeps financial planners focused on short-term external outflows.

The central bank said that the repayment would not affect Pakistan’s foreign exchange reserves, and authorities said that the country’s external situation is still steady.

Reports said that plans for scheduled external payments had already been made ahead of time to make sure everything went smoothly.

At the same time, Pakistan just got $2 billion from Saudi Arabia, which helped its foreign currency reserves even more. This money came in just two days before the UAE confirmed that it would pay back the money, showing that major regional allies are still helping each other financially.

Separately, Pakistan also got $500 million from Eurobonds a day earlier, which made its foreign accounts even more liquid. These combined inflows and outflows show that Pakistan’s external financing operations are busy right now, with a lot of different tools being used to manage obligations and keep reserves stable.

The SBP said again that the country’s dollar reserves are still stable overall, even if it paid back the UAE.