ISLAMABAD: Pakistan Foreign Office has categorically rejected circulating media reports suggesting any souring of ties with the United Arab Emirates following the repayment of matured financial deposits.

The official spokesperson described the UAE as a friend and brotherly country, emphasizing that financial matters must never be linked to the deep bilateral relationship.

This firm clarification comes amid speculation triggered by Pakistan's decision to return approximately 3.5 billion US dollars in deposits held with the State Bank of Pakistan.

The deposits, originally placed under bilateral commercial agreements, demonstrated the UAE's strong support for Pakistan's economic stability over the years.

According to the Foreign Office statement issued on April 4, 2026, the repayment follows mutually agreed terms and constitutes a routine financial transaction.

Spokesperson Tahir Andrabi highlighted that any attempt to portray the matter differently remains erroneous and misleading.

Pakistan and the UAE share longstanding fraternal bonds built on trust, strategic cooperation in trade, investment, defence, and robust people-to-people ties.

The relationship has endured the test of time and continues to strengthen annually.

Pakistan warmly recalls the pivotal role of the late Sheikh Zayed bin Sultan Al Nahyan in forging this enduring friendship and his special affection for the people of Pakistan.

Recent media commentary attempted to link the deposit repayment with broader geopolitical shifts, particularly amid regional tensions.

However, the Foreign Office dismissed such interpretations outright, underscoring the routine nature of the process.

Pakistan's foreign exchange reserves stood at around 16.4 billion US dollars in early April 2026, even as the country managed other external obligations including a 1.3 billion US dollar Eurobond repayment.

The UAE deposits had been rolled over multiple times since 2019, with interest payments consistently honoured at approximately six percent annually.

This financial history reflects the trust and mutual benefit that have defined Pak-UAE economic partnership.

Despite the repayment, both nations maintain active collaboration across multiple sectors.

UAE investments in Pakistan span critical areas including energy, infrastructure, and real estate, contributing significantly to national development.

Pakistani expatriates in the UAE number in the millions and serve as a vital bridge between the two economies through remittances and skills transfer.

The Foreign Office reiterated that financial transactions of this nature do not impact the strategic depth of the relationship.

Pakistan views the UAE as a steadfast partner in regional stability and economic progress.

In parallel, Pakistan continues to play a constructive diplomatic role on the global stage.

The Foreign Office highlighted its widely appreciated mediation efforts between the United States and Iran amid ongoing regional challenges.

Spokesperson Tahir Andrabi noted that Pakistan accepted the challenge of facilitating talks between the warring parties.

Pakistan has engaged continuously with both Washington and Tehran to reduce tensions and promote dialogue.

These efforts aim at ensuring lasting peace and stability in the broader Middle East region.

International observers have acknowledged Pakistan's unique position as a bridge due to its working relations with both sides.

Recent briefings indicated positive progress in certain aspects of the facilitation process despite acknowledged obstacles.

Pakistan remains committed to promoting facilitation and dialogue, regardless of challenges.

This diplomatic activism complements Pakistan's strong ties with Gulf nations, including the UAE.

The UAE has consistently supported Pakistan during economic difficulties, providing timely assistance that helped stabilize the balance of payments.

In return, Pakistan has extended cooperation in security, counter-terrorism, and humanitarian domains.

Defence collaboration between the two countries includes joint exercises and training programmes that enhance interoperability.

Trade volume between Pakistan and the UAE has shown steady growth, with the UAE serving as one of Pakistan's major export destinations for textiles, rice, and other commodities.

Investment commitments from UAE entities continue to flow into Pakistani projects, reflecting confidence in the long-term partnership.

The Foreign Office statement serves to dispel rumours and reinforce the narrative of unbreakable brotherly ties.

Analysts note that such clarifications are essential in an era of rapid information spread through digital media.

Pakistan's economy has demonstrated resilience, with the State Bank of Pakistan managing multiple maturities while maintaining macroeconomic stability under the ongoing IMF programme.

The repayment decision aligns with principles of honouring international commitments and upholding national dignity.

Pakistan remains open to further economic cooperation with the UAE, including potential new investment avenues in emerging sectors such as technology and renewable energy.

Regional peace initiatives led by Pakistan have earned praise from various international quarters for their neutrality and persistence.

The mediation between the US and Iran underscores Pakistan's growing stature as a responsible actor in conflict resolution.

Despite media speculation linking financial and diplomatic developments, the Foreign Office maintains a clear separation between economic routines and strategic partnerships.

Pakistan's foreign policy prioritizes peace, stability, and mutually beneficial relations with all friendly nations.

The UAE continues to host a large Pakistani community whose contributions are valued by both governments.

High-level visits and telephonic conversations between leaders of the two countries occur regularly to review and expand cooperation.

Pakistan expresses gratitude for the UAE's consistent support during critical times in its economic journey.

This gratitude is matched by Pakistan's own contributions to regional security and development initiatives supported by the UAE.

The clarification by the Foreign Office has been welcomed in diplomatic circles as a timely reaffirmation of enduring friendship.

Observers expect the bilateral relationship to continue flourishing across all domains in the coming years.

Pakistan's proactive diplomacy and economic management reflect its commitment to strength and self-reliance while cherishing time-tested alliances.

As the repayment process concludes smoothly, both nations look forward to new horizons of collaboration that benefit their peoples and the region.

The Foreign Office remains confident that such brotherly ties will only deepen with time, unaffected by routine financial adjustments.