Pakistan Senator Defends $3.5 Billion UAE Loan Repayment as Support for 'Helpless' Ally
In a revealing interview with Dunya News, Pakistani Senator Mushahid Hussain has articulated Islamabad's rationale for repaying a substantial $3.5 billion loan to the United Arab Emirates (UAE), framing the move as an act of solidarity with a long-standing partner in distress rather than a mere financial transaction.
Characterizing the UAE as 'In Need and Helpless'
Hussain asserted that Pakistan's decision to return the funds is rooted in the UAE's current predicaments. "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," he stated, as reported by ANI. He elaborated on the UAE's challenges, citing significant financial outflows and regional conflicts.
"They are stuck and helpless now. They gave US President Donald Trump $150 billion. They are also stuck in wars in Yemen and Sudan. It's our responsibility to help them," Hussain explained, underscoring a sense of obligation derived from historical ties.
Historical Context and Bilateral Relations
The senator highlighted the deep-rooted relationship between Pakistan and the UAE, tracing it back to the era of Sheikh Zayed bin Sultan Al Nahyan, the founding father of the UAE. "We have always helped them. Pakistan played an important role in building the UAE. We trained their armed forces," Hussain recalled, emphasizing Pakistan's contributions to the Gulf nation's development and security infrastructure.
This historical backdrop, according to Hussain, transforms the loan repayment from a simple debt settlement into a gesture of continued partnership and support during the UAE's time of need.
A Warning on UAE-India Relations and 'Akhand Bharat'
In a notable diversion, Hussain turned his attention to the UAE's strengthening relationship with India, issuing a stark warning. He pointed to the substantial Indian expatriate population in the UAE, noting, "Your population is 10 million; out of that, 4.3 million are from India."
He cautioned the UAE, "Pay attention that the friendly ties with them do not land you up as part of Akhand Bharat." This reference to 'Akhand Bharat'—a concept of a greater, unified India—reflects geopolitical anxieties and serves as a pointed remark on the potential implications of deepening Indo-UAE ties.
Financial Implications and Pakistan's Economic Strain
The decision to repay the $3.5 billion comes at a precarious economic juncture for Pakistan. According to a senior official cited by Dawn, the repayment is being expedited, with the amount to be returned "as soon as possible," prioritizing "national dignity" over financial considerations.
This loan was part of external assistance provided by the Abu Dhabi Fund for Development in 2019 to stabilize Pakistan's balance of payments. Reports indicate Abu Dhabi requested immediate settlement, prompting Islamabad's swift action.
The financial impact is significant:
- Pakistan's central bank reserves are currently estimated at approximately $16.3 billion.
- Repaying $3.5 billion would deplete these reserves by nearly 18%, severely weakening the country's external financial buffer and import cover capacity.
- This move occurs while Pakistan is under an International Monetary Fund (IMF) programme and requires about $12.5 billion in rollovers from key partners, including China, Saudi Arabia, and the UAE, to meet its external financing needs.
Hussain's comments thus juxtapose a narrative of fraternal support with the stark economic realities facing Pakistan, all while injecting a cautionary geopolitical note regarding the UAE's alliances in the region.
