LAHORE: Pakistan on Saturday rejected “misleading and unfounded commentary” surrounding financial deposits from the United Arab Emirates (UAE), asserting that the return of matured funds is a routine and agreed financial transaction between the two countries.
The clarification comes amid renewed attention to UAE deposits that have supported Pakistan’s external financing position in recent years. The funds, placed with the State Bank of Pakistan since 2019, have been periodically rolled over and form part of broader arrangements with key partners to help maintain foreign exchange reserves under ongoing economic stabilisation efforts.
In an official statement, the Ministry of Foreign Affairs said the deposits were placed “under bilateral commercial agreements,” reflecting the UAE’s continued support for Pakistan’s economic stability.
“Accordingly, pursuant to mutually agreed terms, the Government of Pakistan, through the SBP, is now returning the matured deposits to the UAE,” the spokesperson said, adding, “This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading.”
The remarks follow media reports speculating that Islamabad is set to return up to $3.5 billion to the UAE, raising concerns over potential pressure on foreign exchange reserves and the broader external financing outlook.
Earlier, the Ministry of Finance also addressed the issue, stating that “the Government of Pakistan is continuously monitoring and managing Pakistan’s external flows in order to ensure stable foreign exchange reserves,” while reaffirming its commitment to meeting all external obligations.
The Foreign Office underscored that financial arrangements between Islamabad and Abu Dhabi should be viewed within the broader framework of longstanding bilateral cooperation, rather than through speculative interpretations.
“Pakistan and the UAE share a longstanding, fraternal partnership built on trust and strategic cooperation across trade, investment, defence, and people-to-people ties,” the statement said.
Reaffirming the strength of ties, the ministry highlighted the historic role of the UAE’s founding leader, Sheikh Zayed bin Sultan Al Nahyan, noting that the people of Pakistan “warmly cherish” his contributions in fostering close relations between the two nations.
The Foreign Office further stressed that the relationship “has stood the test of time” and continues to deepen across multiple sectors.
“Pakistan remains fully committed to further strengthening this enduring relationship for a shared, prosperous future,” the spokesperson added.
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