{"id":41049,"date":"2026-04-04T15:52:25","date_gmt":"2026-04-04T15:52:25","guid":{"rendered":"https:\/\/foreignnewstoday.com\/?p=41049"},"modified":"2026-04-04T15:52:25","modified_gmt":"2026-04-04T15:52:25","slug":"fo-rejects-misleading-unfounded-commentary-regarding-financial-deposits-from-uae","status":"publish","type":"post","link":"https:\/\/foreignnewstoday.com\/?p=41049","title":{"rendered":"FO rejects \u2018misleading, unfounded\u2019 commentary regarding financial deposits from UAE"},"content":{"rendered":"


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The Foreign Office (FO) on Saturday rejected \u201cmisleading and unfounded commentary\u201d regarding financial deposits from the United Arab Emirates (UAE), saying this was a \u201croutine transaction\u201d.<\/p>\n

A senior Pakistani official had said on Friday that the country had decided <\/a>to return $3.5 billion in debt to the UAE before the end of this month. According to the official, Abu Dhabi had sought the immediate return of the amount. These funds were part of external financing support extended by the UAE in 2019 to help stabilise Pakistan\u2019s balance of payments.<\/p>\n

In a statement, FO Spokesperson Tahir Andrabi said, \u201cThe deposits were placed under bilateral commercial agreements, demonstrating the UAE\u2019s strong support for Pakistan\u2019s economic stability and prosperity.\u201d<\/p>\n

He said that pursuant to mutually agreed terms, the government, through the State Bank of Pakistan (SBP), was now returning the matured deposits to the UAE.<\/p>\n

\u201cThis is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading,\u201d he said.<\/p>\n

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\u201cPakistan and the UAE share a longstanding, fraternal partnership built on trust and strategic cooperation across trade, investment, defence, and people-to-people ties,\u201d he said, adding that this relationship had stood the test of time and grown stronger with each passing year.<\/p>\n

\u201cThe people of Pakistan warmly cherish the pivotal role played by His Highness, the late Sheikh Zayed bin Sultan Al Nahyan, in forging this enduring friendship, as well as his special affection for Pakistan,\u201d he said.<\/p>\n

\u201cPakistan remains fully committed to further strengthening this enduring relationship for a shared, prosperous future,\u201d he said.<\/p>\n

The senior Pakistani official said on Friday that the dec\u00adi\u00adsion to return the debt had ended the uncertainty surrounding the deposits placed through the Abu Dhabi Fund for Development, which were rolled over multiple times since 2019. In recent months, the extensions had become as short as a month long, reflecting Emirati unease over the continuation of the arrangement.<\/p>\n

Under its ongoing International Monetary Fund (IMF) programme, Pakistan is required to secure around $12.5 billion in rollovers from three key partners \u2014 China, Saudi Arabia and the UAE \u2014 to maintain reserve levels and meet external financing needs. The UAE deposits are, therefore, a critical part of this arrangement.<\/p>\n

The latest available data shows Pakistan\u2019s central bank reserves at about $16.3 billion. A repayment of $3 billion would reduce these holdings sharply by 18 per cent, significantly lowering the external buffer and import cover.<\/p>\n

The Ministry of Finance on Friday, through a post on X, said it was \u201ccontinuously monitoring and managing Pakistan\u2019s external flows in order to ensure stable foreign exchange reserves\u201d.<\/p>\n

\u201cThe government of Pakistan remains committed to fulfilling all its external obligations,\u201d it added.<\/p>\n

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