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Pakistan on Saturday rejected the "misleading and unfounded" commentary regarding the repayment of the deposits placed by the United Arab Emirates (UAE) with the State Bank of Pakistan.
According to The News report published on Saturday, Pakistan is all set to repay two major external loans worth $3.5 billion during the current month.
It said Islamabad has decided to repay the UAE’s $2 billion deposits, along with 6% interest, on April 17. Additionally, $1.3 billion will be repaid upon the maturity of a Eurobond on April 8, 2026.
In total, Pakistan will have to make two major repayments of external loans amounting to $3.5 billion, including principal and markup.
However, the Foreign Office rejected the reports, saying the funds were placed with the central bank under bilateral commercial agreements.
The deposits demonstrated "the UAE's strong support for Pakistan's economic stability and prosperity", it said in a statement.
The FO clarified that the government, through the SBP, was returning the matured deposits to the UAE pursuant to mutually agreed terms.
"This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading," it said.
The FO maintained that Islamabad and Abu Dhabi shared a "longstanding, fraternal partnership" built on trust and strategic cooperation across trade, investment, defence, and people-to-people ties.
The relationship, it said, has stood the test of time and has grown stronger with each passing year.
The Foreign Office said Pakistanis cherished the late Sheikh Zayed bin Sultan Al Nahyan's key role in strengthening Pakistan-UAE ties and his deep affection for the country.
Pakistan remained fully committed to further strengthening its ties with the UAE for a shared, prosperous future, it added.
