Pakistan UAE Deposit Repayment Clarified as Routine Move

Pakistan has clarified the Pakistan UAE repayment and dismissed recent speculation. The Foreign Office called the reports misleading and unfounded. It said the move followed agreed financial terms and timelines.
Some reports claimed Pakistan would return $3.5 billion urgently. However, officials said the repayment was already scheduled. Therefore, it does not reflect any financial crisis.

Clarification on UAE Deposits

Pakistan received these deposits in 2019 through the Abu Dhabi Fund for Development. The funds supported the country’s balance of payments. Over time, both sides rolled over the deposits under mutual agreements.
Foreign Office spokesperson Tahir Andrabi explained the situation clearly. He said the deposits came under bilateral commercial arrangements. In addition, he highlighted the UAE’s continued support for Pakistan’s economy.
He confirmed that Pakistan is returning the matured amount through the State Bank of Pakistan. As a result, the move reflects routine financial management. He also urged people to avoid spreading misleading narratives.

Economic Impact and Government Response

Pakistan currently holds about $16.3 billion in reserves. A $3 billion repayment could reduce reserves by nearly 18 percent. However, authorities continue to monitor the situation carefully.
The country remains part of the International Monetary Fund programme. For example, it must secure $12.5 billion in rollovers from key partners. These include China, Saudi Arabia, and the UAE.
Meanwhile, the Finance Ministry stays confident about stability. It said officials actively manage external flows. Therefore, Pakistan will meet all its financial obligations on time.
Andrabi also stressed strong ties between Pakistan and the UAE. He said both countries share trust and cooperation. In addition, Pakistan remains committed to a stable and prosperous future.