According to a media report, Pakistan is set to repay external loans worth 3.5 billion dollars this month, including 2 billion dollars in deposits to the UAE along with interest, and 1.3 billion dollars upon the maturity of a Eurobond on April 8, 2026.
However, the Foreign Office clarified that these funds were placed with the central bank under bilateral commercial agreements and do not indicate any unusual financial stress.
In its statement, the FO said the deposits reflect the UAE’s continued support for Pakistan’s economic stability and prosperity.
It added that the government, through the State Bank of Pakistan, is returning the matured deposits in line with mutually agreed terms.
“This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading,” the statement said.
The FO emphasised that Islamabad and Abu Dhabi share a longstanding and fraternal partnership built on trust and cooperation across trade, investment, defence, and people to people ties.
It also recalled the contributions of Sheikh Zayed bin Sultan Al Nahyan in strengthening relations between the two countries, noting his deep affection for Pakistan.
The Foreign Office reaffirmed that Pakistan remains committed to further enhancing its ties with the UAE for a shared and prosperous future.
