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
Perspective of Pakistan Ministry of Foreign Affairs
- ▪Pakistan's Ministry of Foreign Affairs characterized the United Arab Emirates' US$3.5 billion withdrawal as not politically motivated
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