UAE Withdraws $3.5 Billion Deposit from Pakistan Days Before Iran Ceasefire Mediation

Apr 12, 2026

The United Arab Emirates withdrew a $3.5 billion deposit from Pakistan's State Bank just days before Pakistan mediated a ceasefire in the Iran war, removing roughly 21 percent of Pakistan's foreign exchange reserves. Pakistan's Ministry of Foreign Affairs described the withdrawal as a routine financial transaction, seeking to downplay any political significance. The timing of the UAE's action, however, coincided with a wave of criticism directed at Islamabad on Emirati social media platforms. The withdrawal represents a significant financial blow to Pakistan's already strained foreign currency position amid its role in regional diplomatic efforts.

UAE's $3.5 Billion Withdrawal from Pakistan

▪Pakistan's foreign ministry described the United Arab Emirates' withdrawal as a routine financial transaction.
▪The United Arab Emirates' withdrawal of US$3.5 billion from Pakistan equated to roughly 21 per cent of Pakistan's foreign exchange reserves.
▪The United Arab Emirates sought repayment of a US$3.5 billion deposit from Pakistan's central bank.

Pakistan's Role in Iran Ceasefire Mediation

▪Pakistan helped to secure a ceasefire in the Iran war this week.
▪The United Arab Emirates sought repayment of the US$3.5 billion deposit days before Pakistan helped secure a ceasefire in the Iran war.

Emirati Public Criticism and Diplomatic Tensions

▪The United Arab Emirates' withdrawal of the US$3.5 billion deposit from Pakistan was accompanied by a wave of criticism on Emirati social media directed at Islamabad.