‘Routine Transaction’:  FO rejects ‘misleading, unfounded’ commentary on UAE financial deposits

• FO spokesperson stresses transaction is a routine, terming any portrayal otherwise ‘erroneous and misleading’

• Andrabi deposits demonstrate UAE’s strong support for Pakistan’s economic ‘stability and prosperity’

• Says govt, through SBP returning matured deposits pursuant to mutually agreed terms

 ISLAMABAD: The Foreign Office (FO) on Saturday rejected what it described as “misleading and unfounded commentary” regarding financial deposits from the United Arab Emirates (UAE), stressing that the transaction was routine and any portrayal otherwise is “erroneous and misleading.”

In a statement, FO Spokesperson Tahir Andrabi said, “The deposits, held with the State Bank of Pakistan (SBP), were placed under bilateral commercial agreements, demonstrating the UAE’s strong support for Pakistan’s economic stability and prosperity.”

🔊PR No.9️⃣1️⃣/2️⃣0️⃣2️⃣6️⃣

Pakistan Rejects Misleading Commentary on UAE Financial Deposits, Reaffirms Strong Partnership with UAE pic.twitter.com/0RCfCEbmea

— Ministry of Foreign Affairs - Pakistan (@ForeignOfficePk) April 4, 2026

The clarification comes a day after media reports, citing a senior Pakistani official, claimed that Pakistan had decided to return $3.5 billion in debt to the UAE before the end of this month, following a request from Abu Dhabi for immediate repayment. These funds were part of external financing support extended by the UAE in 2019 to help stabilise Pakistan’s balance of payments.

“The government, through the State Bank of Pakistan, is returning the matured deposits pursuant to mutually agreed terms. This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading,” Andrabi emphasized.

He highlighted the longstanding partnership between Pakistan and the UAE, describing it as “built on trust and strategic cooperation across trade, investment, defence, and people-to-people ties,” which has strengthened over the years.

The FO statement also paid tribute to the late Sheikh Zayed bin Sultan Al Nahyan, noting his pivotal role in forging this enduring friendship and his special affection for Pakistan. “Pakistan remains fully committed to further strengthening this relationship for a shared, prosperous future,” it added.

The senior Pakistani official said on Friday that the repayment decision has ended months of uncertainty surrounding deposits placed through the Abu Dhabi Fund for Development, which had been rolled over multiple times since 2019. Recent extensions had become as short as a month, reflecting Emirati caution over continuing the arrangement.

Under its ongoing International Monetary Fund (IMF) programme, Pakistan is required to secure around $12.5 billion in rollovers from three key partners — China, Saudi Arabia, and the UAE — to maintain reserve levels and meet external financing needs. The UAE deposits are thus a critical component of this arrangement.

The latest data shows Pakistan’s central bank reserves at approximately $16.3 billion. A repayment of $3 billion would reduce these holdings by roughly 18 per cent, significantly lowering the external buffer and import cover.

The Ministry of Finance, in a post on X on Friday, stated that it was “continuously monitoring and managing Pakistan’s external flows to ensure stable foreign exchange reserves.” It reiterated, “The government of Pakistan remains committed to fulfilling all its external obligations.”

In response to speculation and commentary in some section of the media regarding the Government of Pakistan’s external flows, it may be noted that Ministry of Finance is continuously monitoring and managing Pakistan’s external flows in order to ensure stable foreign exchange…

— Ministry of Finance, Government of Pakistan (@Financegovpk) April 3, 2026