Bad news for Pakistan as US, UK, UAE give big jolt to Islamabad, Sheikh Mohammed bin Zayed withdraws…, now country’s state bank left with only…

The State Bank of Pakistan said that during the financial year 2025, the UAE, the US, and the UK collectively withdrew over $1 billion from Pakistan’s treasury bills (T-bills). Now they are left with a balance of only $42 million. Pakistan’s situation is worsening and it is now impacting foreign investment inflows.

Three nations withdrew more than $1 billion from state bank of Pakistan’s T-bills. Treasury bills, or T-bills, are government debt instruments which are issued to raise funds and promised to be returned over a short-term period of 94 days, 182 days, or 364 days.

Between July 1, 2024, and March 14, 2025, foreign investors invested $1.163 billion in Pakistan’s T-bills. However, they also withdrew $1.121 billion and the balance left with the state bank of Pakistan is only $42 million.

The UK had made the largest contributions of $710 million but withdrew $625 million during this period. Whereas, the UAE withdrew $205 million, and the US removed $130 million. Media reports claim that these decisions taken by other countries are over Pakistan’s current economic situation.

According to a report from the State Bank of Pakistan, the country’s total outstanding debt for the financial year 2025 is $26.2 billion. Economists have also warned that this debt can lead to slow economic growth.

Media reports claimed that Pakistan’s low economic growth rate and political instability are reducing the trust among foreign investors. The recent withdrawals show low confidence among foreign investors about the country’s ability to manage its growing debt burden.

The withdrawal of over $1 billion from T-bills by investors like UAE, the US, and the UK can create major problems for Pakistan’s economy. The country needs to urgently address its economic and political challenges to save itself from collapse.

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