Pakistan Clarifies Routine Repayment of $3B UAE Deposits

Pakistan's Ministry of Foreign Affairs on Saturday dismissed recent social media commentary as misleading regarding the repayment of financial deposits from the United Arab Emirates held with the State Bank of Pakistan. The deposits, totaling approximately $3 billion, are being returned as part of a routine transaction under bilateral commercial agreements, officials said.

The funds were initially placed by the UAE in 2019 to bolster Pakistan's balance of payments and support its economic stability amid requirements for an International Monetary Fund program. According to the Foreign Office statement, the repayment follows mutually agreed terms for the matured deposits. "This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading," spokesperson Tahir Andrabi said.

Pakistan plans to return $2 billion by the end of April, with the remaining amount expected in July, sources familiar with the matter indicated. The country has paid around 6 percent interest on the deposits, which were previously rolled over annually by the UAE. More recently, extensions shortened to one or two months, with the latest maturing on April 17. This...