The Foreign Office on Saturday dismissed “misleading and unfounded commentary” surrounding Pakistan’s repayment of financial deposits to the UAE, clarifying that the move was a routine transaction carried out under agreed terms. The clarification comes after reports that Pakistan had decided to return $3.5 billion to the UAE before the end of the month, with a senior official indicating that Abu Dhabi had sought the immediate repayment of the amount.
The deposits, originally extended in 2019 through the Abu Dhabi Fund for Development, were part of external financing support aimed at stabilising Pakistan’s balance of payments and had since been rolled over multiple times.
In a statement, Foreign Office spokesperson Tahir Andrabi said, “The deposits were placed under bilateral commercial agreements, demonstrating the UAE’s strong support for Pakistan’s economic stability and prosperity.” He added that, in line with mutually agreed terms, the government, through the State Bank of Pakistan, was now returning the matured deposits.