Emirates Leaks reveals: The UAE punishes Pakistan for rejecting its mediation for normalization with Israel
Reliable sources confirmed that the UAE had started punitive measures against Pakistan’s government against the backdrop of Islamabad’s rejection of Abu Dhabi’s mediation for normalization with Israel.
The UAE put Imran Khan’s government in severe trouble after asking the cash-strapped country to return a billion dollars that Abu Dhabi had deposited in the Central Bank of Pakistan.
The UAE deposited the amount with the Central Bank of Pakistan, and after the amount reached its due date, Abu Dhabi requested that the same amount be returned immediately.
The UAE’s request constitutes a significant shock to Pakistan, which is stuck in international debt depths, forcing Islamabad to ask for a time limit.
However, the sources confirmed to Emirates Leaks that the UAE refused to give Pakistan any time limit.
The sources stated that the hard-line position of the UAE was caused by Pakistan’s refusal to respond to Abu Dhabi’s pressure to declare normalization with Israel.
Pakistani officials have made countless attempts to communicate with the UAE, especially with Crown Prince Mohammed bin Zayed, but they have not succeeded so far.
And last year, Pakistan borrowed $1 billion from China to pay off a $1 billion loan from Saudi Arabia.
Reports at the time revealed that Pakistan owes China twice its amount to the International Monetary Fund.
The coronavirus pandemic has exacerbated the economic woes of cash-strapped Pakistan.
Pakistan’s debt problem has been exacerbated for several years now.
According to World Bank estimates, it is estimated that Pakistan’s real GDP growth decreased from 1.9% in FY19 to -1.5% in FY2020.
Pakistan’s public debt exceeds 87% of GDP at the end of 2019-2020, up from around 72% of GDP at the end of 2017-2018.
Moreover, the country’s total debt and external liabilities increased to $113.8 billion in the fiscal year 2020 from $106.3 billion in fiscal 2019.
And at the end of last year, the Pakistani Foreign Ministry announced that it had informed the Emirates of its rejection of Israel’s recognition until a permanent and concrete settlement of the Palestinian issue was reached.
At the time, Pakistani Foreign Minister Shah Mahmood Qureshi said, “I categorically explained to the UAE foreign minister the position of Pakistan on Israel, and that we have not and will not be able to establish a relationship with Israel until a tangible and lasting solution to the Palestinian issue is reached.”
Qureshi also rejected allegations of pressuring Islamabad to recognize Israel.
“First, there will be no pressure on us. We have to make decisions that take Pakistan’s interests into consideration and not because of any pressure. We have a policy and we still stick to it.”
