Islamabad — A senior Pakistani senator drew sharp criticism and renewed attention to Islamabad’s fraught ties with Gulf allies after publicly mocking the United Arab Emirates on camera following Abu Dhabi’s refusal to roll over $3 billion in debt.
Senator Mushahid Hussain, speaking to a television channel on April 6, described the UAE as “bechara” and “majboor” — Urdu words meaning “poor fellow” and “helpless” — and said he was “glad” Pakistan had chosen to repay loans taken over the years. “Bechara UAE needs money, they made commitment to Trump. If they are facing issues, as big brothers, Pakistan will help the UAE,” Hussain said, adding that “Pakistan has a hand in making the UAE” and had long supported the Gulf state’s development.
Hussain also warned Abu Dhabi about its deepening ties with New Delhi, telling the UAE to be cautious because of its large Indian expatriate population. “You have a 10 million population, of which 4.3 million are Indians. Please take care. Your increasing friendship with India… be careful that you do not become part of Akhand Bharat,” he said, invoking a charged political slogan associated with Indian nationalist expansion.
The comments come in the wake of a diplomatic and financial setback for Islamabad: the UAE’s decision not to roll over a $3 billion deposit for the first time in seven years. Pakistan’s Ministry of Foreign Affairs sought to downplay the fallout on April 4, calling the repayment a “routine financial transaction.” But analysts and officials privately warn the move highlights the fragile state of Pakistan’s external finances and growing pressure to secure alternative funding.
The $3 billion equals roughly 18% of Pakistan’s foreign exchange reserves, which stood at $16.4 billion as of March 27, enough to cover about three months of imports. Rising global oil prices and other balance-of-payments challenges have exacerbated the strain, increasing Islamabad’s reliance on periodic injections of Gulf capital and short-term rollover arrangements to steady the economy.
Historically, the UAE has been a major source of support. In early 2023 Abu Dhabi pledged a $1 billion loan and rolled over an existing $2 billion deposit, while state-linked entities discussed large investments, including a proposed $5 billion oil refinery and AD Ports Group’s 2024 concession to manage parts of Karachi Port. The failure to secure a rollover this year — and public jibes from an influential lawmaker — risk adding political friction to ties that have been as much economic as strategic.
Pakistani officials have framed recent talks with the UAE as commercial negotiations over rollover terms, but media reports suggest a breakdown in those discussions, prompting broader concern about structural weaknesses in Pakistan’s economy. The immediate challenge for the government will be to replace or absorb the repayment without triggering market instability, while managing a domestic political response to Hussain’s comments and any diplomatic fallout with a longtime Gulf partner.