Says Pakistan’s clear functionality to fulfil commitments reinforce mutual belief slightly than any pressure
Pakistan-UAE flags. Picture: File
The reimbursement of matured long-term overseas deposits to the United Arab Emirates (UAE) displays Pakistan’s bettering exterior liquidity place, financial stability, and enhanced coverage credibility, apart from the capability to honour its worldwide obligations with out compromising macroeconomic fundamentals, in response to monetary analysts.
As of late March 2026, Pakistan’s whole liquid overseas trade reserves stood at roughly $21.79 billion, offering a stable buffer to handle exterior commitments. The reimbursement underscored the constructive trajectory of the nation’s exterior funds, constructed by means of sustained reforms and improved inflows.
Based on the official statistics, Pakistan’s overseas trade reserves had plummeted to multi-year lows in 2022 amid balance-of-payments pressures and political instability, with State Financial institution of Pakistan (SBP) holdings dipping under $7 billion at one stage.
“Since then, the Authorities of Pakistan and the SBP have applied sturdy exterior account stabilisation measures and macroeconomic reforms, together with shut engagement with the Worldwide Financial Fund (IMF) and bilateral companions. These efforts have efficiently rebuilt exterior buffers,” in response to a monetary analyst.
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By the top of June 2025, SBP overseas trade reserves had risen to about $14.51 billion, up from roughly $9.39 billion in June 2024. The restoration momentum has continued into 2026, with reserves rebounding to ranges not seen since earlier than the 2022 disaster. The development signalled restored investor confidence and higher exterior sector stability.
The analyst stated that the fraternal ties with the UAE remained non-negotiable, and Pakistan’s clear functionality to fulfil these commitments bolstered mutual belief slightly than any pressure.
Earlier on April 4, a Overseas Workplace spokesperson, in a press release, had rejected the latest deceptive and unfounded commentary concerning monetary deposits from the UAE held with the State Financial institution.
“The deposits had been positioned beneath bilateral industrial agreements, demonstrating the UAE’s sturdy help for Pakistan’s financial stability and prosperity. Accordingly, pursuant to mutually agreed phrases, the Authorities of Pakistan, by means of the SBP, is now returning the matured deposits to the UAE. It is a routine monetary transaction, and any try to painting it in any other case is faulty and deceptive,’ the spokesperson added.
He stated that Pakistan and the UAE shared a longstanding, fraternal partnership constructed on belief and strategic cooperation throughout commerce, funding, defence, and people-to-people ties.
