Pakistan rejects UAE reserve claims, calls Return ‘routine transaction’

ISLAMABAD: The Ministry of Foreign Affairs has rejected the comments regarding the financial reserves of the United Arab Emirates (UAE), saying that the recent comments regarding the financial reserves of the UAE are baseless and contrary to reality.

According to the Foreign Office spokesperson, the reserves kept in the State Bank were part of bilateral trade agreements, the Government of Pakistan is returning the reserves after the expiry of the period as per the agreed terms.

According to the spokesperson, the return of reserves is a normal financial transaction, giving it a wrong color is misleading.

The Foreign Office spokesperson said that Pakistan and the UAE have long-standing and brotherly relations, and strategic cooperation is ongoing in various fields including bilateral trade, investment and defense.

The Foreign Office spokesperson said that Pakistan is committed to further promoting strong relations with the UAE.

It may be recalled that The News International had reported in February 2026 that the UAE had in principle approved a 2-month extension of the $2 billion deposits, the new date of which was April 17, 2026, but now the government has decided to return the amount along with interest.

Earlier, the UAE had rolled over $2 billion for only one month, of which $1 billion expired on February 16 and the remaining $1 billion on February 22. The Pakistani government had first applied for an extension for 2 years and later also applied for a further extension.

According to the report, the government has decided that the UAE’s $2 billion deposits will be returned on April 17 with 6% interest, in addition to which $1.3 billion will also be paid on the maturity of the Eurobond on April 8, 2026.

In total, Pakistan will have to make payments of $3.5 billion, including principal and interest, while another $1 billion in UAE deposits will be due in July 2026.