Islamabad, Pakistan – Web Desk: Pakistan’s Foreign Office has rejected speculation surrounding the repayment of financial deposits held by the United Arab Emirates, stating that the process is being carried out in line with agreed terms.
In an official statement, the Ministry of Foreign Affairs Pakistan clarified that the deposits placed with the State Bank of Pakistan were part of bilateral financial arrangements and are now being returned upon maturity as per the agreement.
The spokesperson emphasized that the repayment of these funds is a routine financial transaction and warned that portraying it otherwise is misleading.
Pakistan reaffirmed its strong and longstanding ties with the UAE, highlighting ongoing cooperation in trade, investment, and defense sectors. The statement added that Islamabad remains committed to further strengthening strategic relations with Abu Dhabi.
According to earlier reports, the UAE had approved a two-month extension in February 2026 for $2 billion in deposits, setting a revised maturity date of April 17, 2026. The Pakistani government has now decided to repay the amount along with approximately 6% interest.
In addition, Pakistan is scheduled to repay $1.3 billion in Eurobonds on April 8, 2026. In total, the country faces external payments of around $3.5 billion, including principal and interest, while another $1 billion in UAE deposits is due in July 2026.
The developments come as Pakistan manages external financing needs amid broader economic challenges and ongoing international financial engagements.
