Payment to UAE was in process even before Middle East conflict: FO

The Foreign Office clarified on Thursday that the repayment of funds to the United Arab Emirates was already under discussion prior to the Middle East conflicts. During a weekly press briefing, FO spokesperson Tahir Andrabi emphasized that the matter, involving billions of dollars, predates the recent Iran-US tensions and should not be conflated with ongoing regional issues. The spokesperson reiterated Pakistan’s strong ties with the UAE, calling it a “very old, trusted partner” with historical, cultural, religious, and economic links. Pakistan has also condemned any aggression against the UAE, maintaining a firm stance on security and diplomacy. This clarification comes amid mounting pressure on Pakistan’s foreign exchange reserves, which have necessitated exploring fresh external financing options, including potential support from China and Saudi Arabia. The government is finalizing arrangements to repay around $3. 45 billion to the UAE, with $450 million scheduled for immediate payment, and the remainder in two tranches: $2 billion on April 17 and $1 billion on April 23. These funds include loans dating back to the late 1990s and subsequent rollovers, carrying an interest rate of around 6. 5 percent. In a related development, the State Bank of Pakistan today received a deposit of USD 2 billion from Saudi Arabia, part of the promised USD 3 billion support package, which is expected to ease some pressure on the country’s forex reserves. Meanwhile, the foreign exchange reserves held by the State Bank of Pakistan plunged by $1. 32 billion to $15. 08 billion during the week ended on April 10, 2026, the central bank said on Thursday. The decline comes after the central bank repaid $1. 426. 1 billion against Pakistan Sovereign Eurobond.

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