The deposits reflect the United Arab Emirates’ strong support for Pakistan’s economic stability and prosperity, the Foreign Office said.
The Foreign Office Pakistan on Saturday dismissed reports about the repayment of debt to the United Arab Emirates as “misleading and unfounded,” clarifying that the process is a routine financial transaction.
According to a report by The News International, Pakistan is set to repay two major external loans totaling $3.5 billion during the current month.
It said Islamabad has decided to repay the United Arab Emirates’ $2 billion deposits, along with 6% interest, on April 17. In addition, $1.3 billion will be repaid upon the maturity of a Eurobond on April 8, 2026.
Overall, Pakistan is set to make two major external debt repayments totaling $3.5 billion, including both principal and interest.
However, the Foreign Office Pakistan dismissed the reports, stating that the funds were placed with the central bank under bilateral commercial agreements.
In its statement, it added that the deposits reflect the United Arab Emirates’ strong support for Pakistan’s economic stability and prosperity.
The Foreign Office Pakistan clarified that the government, through the State Bank of Pakistan, is returning the matured deposits to the United Arab Emirates in line with mutually agreed terms.
“This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading,” it said.
The FO added that Islamabad and Abu Dhabi share a longstanding, fraternal partnership built on trust and strategic cooperation across trade, investment, defence, and people-to-people ties.
It noted that the relationship has stood the test of time and continues to grow stronger with each passing year.
The FO also said Pakistanis remember the late Sheikh Zayed bin Sultan Al Nahyan for his significant role in strengthening Pakistan-UAE relations and his deep affection for the country.
It added that Pakistan remains fully committed to further strengthening its ties with the United Arab Emirates for a shared and prosperous future.
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