ISLAMABAD: Pakistan on Saturday rejected what it called “misleading and unfounded” commentary on financial deposits from the United Arab Emirates, saying the return of funds held with its central bank was a routine transaction carried out under agreed terms.
The statement by the foreign office came a day after Pakistan’s finance ministry said the country remained committed to meeting all its external obligations.
Local media reports had suggested Islamabad was set to return about $3.5 billion in loans to the UAE this month, with some saying the Gulf state had asked for the immediate return of funds amid the Iran war, raising concerns about Pakistan’s external financing position.
“The Ministry of Foreign Affairs categorically rejects the recent misleading and unfounded commentary regarding financial deposits from the United Arab Emirates (UAE) held with the State Bank of Pakistan (SBP),” it said.
The statement added that the deposits had been placed under bilateral commercial agreements and were now being returned as they matured, describing the process as routine and cautioning against portraying it otherwise.
