Defence Minister Khawaja Asif said that there is no indication of dissatisfaction from the United Arab Emirates (UAE) toward Pakistan, emphasising that the bilateral relationship continues to be strong.
Speaking on Geo News’ programme "Aaj Shahzeb Khanzada Kay Sath" on Wednesday, Asif said Pakistan's relationship with the UAE was based on generations and had solid foundations.
"On maturity, we will return the amount, which we have done before as well, and it can come back again," he added.
Pakistan will return a $3.5 billion loan to the United Arab Emirates this month, raising pressure on reserves. The repayment comes as Pakistan targets foreign exchange reserves above $18 billion by June under a $7 billion International Monetary Fund programme.
In the past, the UAE had rolled over such deposits annually. However, in December 2025, the facility was extended only for short durations — initially for one month and then for two months — reflecting tightening financial conditions.
Khurram Schehzad, advisor to the finance minister, said on Tuesday the country had repaid $1.43 billion in external debt, including the $1.3 billion Eurobond maturing on April 8, and $126.125 million in coupon obligations on other Eurobond issuances, in full and on time.
The Foreign Office last week rejected "misleading and unfounded" reports concerning the return of UAE debt, saying the repayment is a routine financial transaction.
Referring to regional developments, Minister Asif said Saudi Arabia had expressed strong displeasure following an Iranian attack on a petrochemical complex, adding that Pakistan had condemned the incident.
He said Pakistan had been walking a tightrope during the situation but managed to retain the trust of all countries, including Iran. "At no stage did Pakistan's relations with any country deteriorate," he maintained.
Pakistan has emerged as a key intermediary between Iran and the United States to secure a temporary ceasefire and host negotiations to end the war in the Middle East.
Premier Shehbaz said the two-week truce would next lead to talks in Islamabad on April 10.
Asif said India appeared to be the most upset over the recent developments, adding that the position built by Pakistan’s leadership would yield positive results, especially with the support of countries like China and Russia.
He further said that if there could be any ill intent, it might come from Israel, which would prefer a destructive outcome in the situation.
