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news Scmp World 2026-04-11

UAE Withdraws $3.5 Billion from Pakistan After Mediating Iran Conflict

The UAE withdrew a $3.5 billion deposit from Pakistan's central bank following Pakistan's role in mediating the Iran conflict. This withdrawal, which amounts to 21% of Pakistan's reserves, has been met with criticism and described by some as a routine financial transaction.


Days before Pakistan had helped to secure a ceasefire in the Iran war this week, the United Arab Emirates was seeking repayment of a US$3.5 billion deposit from Islamabad’s central bank. The withdrawal, brushed off as a “routine financial transaction” by Pakistan’s foreign ministry, equated to roughly 21 per cent of the country’s foreign exchange reserves. It was accompanied by a wave of criticism on Emirati social media directed at Islamabad. “When our security is directly threatened, we hear.....

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