ISLAMABAD: The Foreign Office clarified on Saturday that reports about UAE deposits are false and misleading, stressing that the repayment of funds is a normal part of bilateral financial agreements.
According to the ministry, the funds held in the State Bank of Pakistan were part of bilateral trade agreements, and Pakistan is returning the deposits in accordance with the agreed terms upon maturity.
Foreign Office emphasized that the repayment is a routine financial procedure and misrepresenting it is misleading.
Pakistan and the UAE share long-standing and fraternal relations, with strategic cooperation continuing across trade, investment, and defense sectors.
Repayment Details:
Pakistan will return USD 2 billion in UAE deposits on April 17, 2026, with an interest rate of 6 percent.
Additionally, a Eurobond of USD 1.3 billion will mature on April 8, 2026, and be repaid. Overall, Pakistan will pay a total of USD 3.5 billion, including principal and interest.
A further USD 1 billion in UAE deposits is scheduled for repayment in July 2026.
The FO reaffirmed Pakistan’s commitment to strengthening its strategic and economic relations with the UAE.
Earlier reports indicated that the UAE had initially approved a two-month extension for the USD 2 billion deposits, with maturity previously set for February 2026, but Pakistan opted for repayment along with accrued interest.
