Pakistan rejects ‘misleading’ claims on UAE deposits; terms repayment routine transaction
- Says deposits were placed to support Pakistan’s economic stability
The Ministry of Foreign Affairs (MoFA) on Saturday rejected “misleading and unfounded” commentary regarding financial deposits from the United Arab Emirates (UAE) held with the State Bank of Pakistan (SBP).
In an official statement, the Foreign Office clarified that the return of these deposits is a “routine financial transaction” conducted under mutually agreed-upon bilateral commercial terms. The ministry emphasised that the deposits were placed to support Pakistan’s economic stability and prosperity.
“Pursuant to mutually agreed terms, the government of Pakistan, through the SBP, is now returning the matured deposits to the UAE,” the statement read, adding that any attempt to portray the move otherwise is “erroneous and misleading.”
Reaffirming the depth of the bilateral relationship, the Foreign Office noted that Pakistan and the UAE share a longstanding, fraternal partnership built on strategic cooperation across trade, investment, and defence. The statement also paid tribute to the late Sheikh Zayed bin Sultan Al Nahyan for his pivotal role in forging this enduring friendship, as well as his special affection for Pakistan.
READ MORE: UAE agrees to rollover $2bn loan for two months: report
The ministry stated that Pakistan remains fully committed to further strengthening its relationship with the UAE for a “shared, prosperous future.”
The development comes as the Pakistan government has decided to repay USD2 billion to the United Arab Emirates (UAE).
Business Recorder on Saturday quoted reliable sources as saying that the massive repayment will be made by the end of the current month.
The amount, parked with the State Bank of Pakistan as a safe deposit, was carrying an interest rate of around 6 percent, making it a relatively expensive for the country, officials said.
According to senior officials, the UAE had previously been rolling over the deposit on an annual basis.
However, the rollover terms were shortened in recent months, with the facility extended for one month in December 2025 and subsequently for monthly basis.
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