Pakistan says ties with UAE remain strong amid deposit 'speculation'

Pakistan dismissed on Monday recent reports suggesting strain in its relationship with the United Arab Emirates (UAE) over the return of financial deposits, calling such claims misleading and emphasizing that transactions are routine under existing agreements.

Pakistan’s Ministry of Foreign Affairs (MoFA) spokesperson said the repayment of matured UAE deposits is part of standard financial procedures and should not be interpreted as a sign of weakening bilateral ties.

“These transactions are routine and reflect normal financial operations, not a shift in our strategic partnership,” a MoFA spokesperson said.

According to the MoFA, Pakistan and the UAE share decades-long relations encompassing defense, economic, cultural, and social ties. Islamabad has historically contributed to the development of the UAE’s armed forces, providing military training, establishing specialized institutions, and supporting commando and technical units.

The ministry also highlighted the role of the Pakistani diaspora in the UAE, numbering roughly 1.6 million. The community has played a crucial role in the country’s economic growth and infrastructure development, including ports, roads, housing, utilities, and services, while serving as a bridge between the two nations.

Bilateral cooperation, the ministry said, extends beyond labor and skills exchanges. Shared religious and cultural values, frequent people-to-people interactions, and regular travel for business, tourism, and family visits have reinforced mutual understanding and trust.

Economic collaboration has also intensified in recent years, the MoFA added. In 2024, Pakistan and the UAE signed agreements worth over $3 billion targeting infrastructure, logistics, and trade facilitation. High-level engagements between the two governments during 2025–26 reaffirmed commitments to expand trade, investment, energy cooperation, and regional stability.

Officials stressed that routine financial operations, including the return of matured deposits, do not signal policy shifts. Instead, they said the partnership remains resilient, anchored in trust, shared interests, and sustained collaboration across multiple sectors.

“The Pakistan–UAE relationship is unshakable and continues to play a vital role in promoting regional stability and economic growth,” the spokesperson added.