Defence Minister Khawaja Asif emphasized that there are no indications of dissatisfaction from the United Arab Emirates (UAE) towards Pakistan, highlighting the enduring strength of bilateral relations. He described the Pakistan-UAE relationship as deeply rooted across generations with a solid foundation.
Addressing the repayment of a $3.5 billion loan to the UAE scheduled for this month, Asif reassured that Pakistan would honor its financial commitments, as it has done previously. This repayment adds pressure on Pakistan’s foreign exchange reserves, which the country aims to increase beyond $18 billion by June under a $7 billion International Monetary Fund (IMF) program.
Previously, the UAE had extended such deposits annually, but since December 2025, the loan facility has been renewed only for short periods—initially for one month, then two—reflecting tighter financial conditions. On a related note, Khurram Schehzad, advisor to the finance minister, confirmed that Pakistan recently repaid $1.43 billion in external debt, including the $1.3 billion Eurobond maturing on April 8, along with $126.125 million in coupon payments on other Eurobond issuances, all on schedule.
The Foreign Office dismissed recent reports suggesting the UAE debt repayment signaled any distress, clarifying that the transaction is a routine financial matter.
Turning to regional dynamics, Minister Asif noted Saudi Arabia’s strong condemnation of an Iranian attack on a petrochemical facility, which Pakistan also denounced. He acknowledged Pakistan’s delicate position amid these tensions but stressed that the country has successfully maintained the trust of all involved nations, including Iran. “At no point have Pakistan’s relations with any country deteriorated,” he asserted.
In a significant development, Pakistan has taken on a key role as a mediator between Iran and the United States, facilitating efforts to secure a temporary ceasefire and host negotiations aimed at ending the conflict in the Middle East. Prime Minister Shehbaz Sharif announced that the two-week truce would pave the way for talks scheduled in Islamabad on April 10.
Asif also observed that India appears most unsettled by these recent developments. He expressed confidence that Pakistan’s diplomatic efforts, supported by allies such as China and Russia, will produce positive outcomes. Additionally, he suggested that if any ill will were to arise, it might come from Israel, which he believes would prefer a destructive resolution to the conflict.
