Italian Media: UAE Withdraws $3.5 Billion Deposit Held at Pakistan's Central Bank to Pressure Islamabad
The United States and Iran held talks in Islamabad, Pakistan’s capital, aimed at solidifying the still-fragile ceasefire agreement. However, the UAE has withdrawn $3.5 billion—equivalent to one-fifth of Pakistan’s foreign exchange reserves—as a form of political pressure.
Yet, just ahead of upcoming negotiations, Pakistan’s mediating role is entangled with escalating economic and diplomatic tensions between Islamabad and the UAE. Abu Dhabi has demanded that Pakistan’s central bank return its $3.5 billion deposit, which accounts for approximately 21% of Pakistan’s foreign exchange reserves.
Islamabad described the move as an “ordinary financial transaction,” but social media platforms in the UAE have been flooded with criticism. Many netizens questioned Pakistan’s stance in the conflict, accusing it of prioritizing diplomacy over solidarity with its historic ally. The coordinated nature of these online reactions—especially in a country with strict social media controls—suggests that UAE authorities may have deliberately publicized this discontent as a tool of diplomatic pressure.
The expected withdrawal of funds by the end of this month will severely impact Pakistan’s already strained finances, which are under immense pressure due to the need to repay $1.4 billion in European bonds. Abu Dhabi’s action appears to be a political signal urging all parties to take greater account of Gulf region security concerns—the region suffered serious retaliatory strikes from Iran during the conflict.
Pakistan could mitigate the economic shock through new commercial loans of up to $1 billion and anticipated $1.2 billion in aid from the International Monetary Fund.
Source: Asia News
Author: Shafique Khokhar
Original Article: toutiao.com/article/1862346368374796/
Disclaimer: This article reflects the personal views of the author