Islamabad, Apr 4: Pakistan on Saturday rejected as “misleading” the commentary on social media regarding paying back UAE financial deposits, reaffirming a strong partnership with the Gulf nation.
Pakistan calls repayment a routine transaction
The reaction by social media users came in response to media reports that Pakistan was asked by the UAE to return its USD 3 billion, which the latter had deposited with the State Bank of Pakistan (SBP) to support its balance of payment to fulfil a condition of the International Monetary Fund.
Foreign Office, in a statement, confirmed that the deposits were placed under “bilateral commercial agreements, demonstrating the UAE’s strong support for Pakistan’s economic stability and prosperity.”
“Accordingly, pursuant to mutually agreed terms, the Government of Pakistan, through the SBP, is now returning the matured deposits to the UAE. This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading,” it said.
Strong bilateral ties reiterated
It added that the Ministry of Foreign Affairs “categorically rejects the recent misleading and unfounded commentary regarding financial deposits from the United Arab Emirates (UAE) held with the State Bank of Pakistan (SBP).”
The Foreign Office added that Pakistan and the UAE share a longstanding, fraternal partnership built on trust and strategic cooperation across trade, investment, defence and people-to-people ties, and the bilateral relationship has stood the test of time and grown stronger with each passing year.
It concluded by saying that Pakistan remains fully committed to further strengthening this enduring relationship for a shared, prosperous future.
Details of repayment and financial context
Earlier, officials said that Pakistan would pay back USD 2 billion to the UAE by the end of this month, followed by the payment of the rest probably in July.
The money was part of USD 12 billion kept by China, Saudi Arabia and the UAE with the SBP to satisfy the IMF that Pakistan has enough in reserves to qualify for its loan.
The insiders said Pakistan has been paying around 6 per cent interest on the amount. In the past, the UAE used to roll over the deposit on a yearly basis. However, in December 2025, the amount was extended first for one month and then for two months until April 17.
For the current fiscal year, Pakistan needed a rollover of approximately USD 12 billion in external deposits, including USD 5 billion from Saudi Arabia, USD 4 billion from China and USD 3 billion placed by the UAE.
Pakistan has more than USD 21 billion in reserves and will pay back to the UAE, but it may need external financing in the coming months, Geo News said Friday, quoting sources.
It is believed that Pakistan may float bonds in the international market to raise the money or get loans from commercial banks to support its fragile economy.
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Social media speculation dismissed
Meanwhile, social media saw unusual activity, with several users commenting on the return of deposits, with some guessing that it was the price Pakistan was paying for supporting Iran.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
