Defence Minister Khawaja Asif has stated that there are no indications of strained relations between Pakistan and the United Arab Emirates, emphasizing that bilateral ties remain strong and historically rooted.
Speaking on a television programme, Asif said Pakistan’s relationship with the UAE spans generations and continues to be based on mutual trust. He noted that financial arrangements between the two countries, including loan repayments, are handled in a routine and cooperative manner.
His remarks come amid reports that Pakistan is set to repay a $3.5 billion loan to the UAE this month, a move that is expected to put additional pressure on the country’s foreign exchange reserves. The repayment aligns with Islamabad’s broader efforts under an International Monetary Fund (IMF) programme targeting reserves above $18 billion by June.
Officials have previously confirmed that the UAE had extended its deposits to Pakistan on short-term terms in late 2025, reflecting tighter global financial conditions. Despite this, authorities maintain that repayments are part of standard financial obligations and do not signal any diplomatic strain.
Separately, government economic adviser Khurram Schehzad stated that Pakistan has recently repaid over $1.4 billion in external debt, including Eurobond maturities and associated coupon payments, completed on schedule.
The Foreign Office has also dismissed reports suggesting complications in the repayment process, describing such claims as inaccurate and unfounded, and reiterating that the transaction is a routine financial operation.
On regional matters, Asif noted that Pakistan has maintained balanced relations amid ongoing tensions in the Middle East. He said Islamabad has managed to preserve trust with multiple countries, including Iran, despite shifting geopolitical dynamics.
Pakistan has recently played a mediating role in facilitating dialogue between Iran and the United States, contributing to efforts aimed at establishing a temporary ceasefire and hosting further negotiations. Officials have indicated that follow-up talks are expected to take place in Islamabad.
The minister also observed that regional reactions vary, noting differing perspectives among countries in response to recent developments, while reiterating that Pakistan continues to pursue a policy of neutrality and diplomatic engagement across all sides.