Pakistan Rejects Claims Over UAE Deposit Repayment

Islamabad: (Web Desk) – The Foreign Office Pakistan on Saturday dismissed what it described as misleading and unfounded commentary regarding financial deposits from the United Arab Emirates, clarifying that the matter relates to a routine financial transaction.

Addressing the issue, FO spokesperson Tahir Andrabi stated that the deposits were made under bilateral commercial agreements, reflecting the UAE’s continued support for Pakistan’s economic stability. He explained that, in line with mutually agreed terms, the government—through the State Bank of Pakistan—is now returning the matured funds.

Earlier, a senior Pakistani official revealed that the country plans to repay around $3.5 billion to the UAE by the end of the month. These funds were originally provided in 2019 to help stabilize Pakistan’s balance of payments and had been rolled over multiple times since then, often for shorter durations in recent months.

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The FO emphasized that portraying the repayment as anything unusual is inaccurate, reiterating that such transactions are part of standard financial arrangements between partner countries.

Pakistan and the UAE share a longstanding relationship built on trust and cooperation across multiple sectors, including trade, investment, and defence. The FO also acknowledged the historic role of Sheikh Zayed bin Sultan Al Nahyan in strengthening ties between the two nations.

The development comes as Pakistan continues its commitments under the International Monetary Fund programme, which requires securing approximately $12.5 billion in external rollovers from key allies, including China, Saudi Arabia, and the UAE.

According to recent data, Pakistan’s foreign exchange reserves stand at around $16.3 billion. A repayment of $3 billion could reduce reserves by nearly 18 percent, potentially impacting the country’s external buffer and import cover.

Meanwhile, the Ministry of Finance Pakistan has assured that it is closely monitoring external financial flows to maintain stability in foreign exchange reserves.