Pakistan on Saturday firmly rejected what it described as “misleading and unfounded” reports regarding financial deposits placed by the United Arab Emirates (UAE) with the State Bank of Pakistan (SBP), clarifying that their return is a routine financial transaction.

In a statement posted on X, the Foreign Office said recent commentary suggesting otherwise was baseless.

It emphasised that the deposits were made under bilateral commercial agreements and reflected the UAE’s strong support for Pakistan’s economic stability.

“The repayment of matured deposits is being carried out in line with agreed terms. It is a routine financial operation, and any attempt to portray it otherwise is erroneous and misleading,” the statement said.

The Foreign Office underscored that Pakistan and the UAE share longstanding, fraternal relations spanning trade, investment, defence and people-to-people ties. It added that the partnership continues to expand across multiple sectors.

Pakistan also acknowledged the pivotal role of the late Sheikh Zayed bin Sultan Al Nahyan in fostering enduring ties between the two countries, describing the relationship as one built on mutual trust and cooperation.

Reaffirming its commitment to further strengthening bilateral relations, the government said it remains focused on deepening strategic cooperation with the UAE for a shared and prosperous future.

Separately, the Ministry of Finance said it is closely monitoring and managing external financial flows to maintain stable foreign exchange reserves.

In a statement, it reiterated that Pakistan remains committed to meeting all external obligations and dismissed speculation regarding the country’s financial position.