As Pakistan prepares to repay $3.5 billion of the debt it owes to the UAE, its senator Mushahid Hussain framed its financial obligation as a “brotherly rescue” for a nation that is currently “stuck and helpless”.
Hussain, in an interview with Dunya News, said it has a moral responsibility to support the UAE during what he described as its time of crisis. “Bechara (helpless) UAE needs money, they made commitment to Trump. If they are facing issues, as big brothers, Pakistan will help the UAE,” he said.
“Pakistan took the right decision. Our UAE brothers are in need and helpless. We took loans from them and are repaying them in times of crisis. We have always helped them. Pakistan played an important role in building the UAE. We trained their armed forces. We have good relations since the time of Sheikh Zayed bin Sultan Al Nahyan (the founding father and first president of the United Arab Emirates),” said Hussain.
He also stressed Pakistan’s role in “building the UAE,” specifically noting that Pakistani expertise was instrumental in training the UAE’s armed forces. He pointed to the massive instability in the Middle East amid the war that began on February 28, adding that the UAE have $150 billion to US President Donald Trump, implying a significant drain on their reserves. “They are stuck and helpless now. They are also stuck in wars in Yemen and Sudan. It’s our responsibility to help them,” said Hussain.
Hussain went on to give UAE “brotherly advice” regarding its demographics and ties with India. “Your population is 10 million; out of that, 4.3 million are from India. Pay attention that the friendly ties with them do not land you up as part of Akhand Bharat,” he added.
Pakistan prepares to repay US $3.5 billion by this month’s end to the UAE, according to a senior Pakistani official cited by Dawn. “The amount will be returned as soon as possible,” the official added, highlighting that “national dignity could not be compromised for financial considerations.”
The funds in question were part of external financial assistance provided in 2019 through the Abu Dhabi Fund for Development, aimed at stabilising Pakistan’s balance of payments.
Pakistan is currently participating in an International Monetary Fund (IMF) programme that requires it to secure approximately $12.5 billion in rollovers from key international partners, including China, Saudi Arabia and the UAE. These funds are crucial to maintaining adequate reserve levels and meeting ongoing external financing obligations.
Pakistan’s current central bank reserves stand at $16.3 billion, but the UAE repayment will reduce them by 18 per cent, a step that will weaken the country’s external buffer and import cover.
As the Iran war continues, Pakistan is among the countries that have been hit by rising oil and commodity prices.