In a very humiliating incident Pakistan forced to Pay $1 Billion Saudi Arabia loan by begging from China. The Express Tribune reported that Pakistan has given back Saudi Arabia $1 billion out of a $3 billion loan that it had taken one and a half year ago. Pakistan was forced to do so to avoid default on international debt obligations after the kingdom decided to reduce its financial support.
Imran Khan and his Kashmir Dream
The development comes even as Pakistan has been pushing for the meeting of the Organisation of Islamic Cooperation (OIC) since India abrogated Article 370, which gave special status to the erstwhile state of Jammu and Kashmir.
In a report published by Dawn, a Pakistan diplomatic source confirmed that Saudi Arabia had shown reluctance to accept Islamabad`s request for an immediate meeting of OIC foreign ministers` on Kashmir.
After Pakistan failed to gather support from the OIC members on Kashmir on May 22, Prime Minister Imran Khan said, “The reason is that we have no voice and there is a total division amongst (us). We cannot even come together as a whole on the OIC meeting on Kashmir.”
Pakistan’s Propaganda and Maldives’s Support
Though Pakistan reportedly made attempts to push its propaganda of Islamophobia in India in its agenda, Maldives, an ally of India, thwarted the move and said, “Isolated statements by motivated people and disinformation campaigns on social media should not be construed as representative of the feelings of 1.3 billion.”
Pakistan forced to Pay $1 Billion Saudi Arabia loan
In October 2018, Saudi Arabia had agreed to provide $6.2 billion worth of financial package to Pakistan for 3 years. This included $3 billion in cash assistance and $3.2 billion worth of annual oil and gas supply on deferred payments.
According to the agreement between the two nations, the assistance provided by Saudi Arabia was for 1 year. It had an option to roll over the amount at the end of the year for a period of 3 years. Pakistan was paying 3.2% interest on the $3 billion loan. Pakistan had received the first tranche of $1 billion in November 2018, second $1 billion in December 2018 and third tranche of $1 billion in January 2019.
Saudi Arabia is not the only from Pakistan has begged and taken loan, in-fact there are more than 10 countries and bodies from which Pakistan has taken loan. As of March 2020, public debt of Pakistan is estimated to be about ₨42.8 trillion/US$256 billion which is 98.2 percent of gross domestic product (GDP) of Pakistan. Few months ago Pakistan’s puppet PM Imran Khan was begging all nations to write off it’s debt.
These are the reasons why Pakistan forced to Pay $1 Billion Saudi Arabia loan to not to default international debt standard.
Pakistan owes China double the amount it owes to IMF
It’s surprising how the rouge nation is getting submerged deeper and deeper into China’s debt trap. According to an October 2019 report, Pakistan needs to repay China more than double the amount it owes the International Monetary Fund (IMF) in the next 3 years.
The PTI government took over $13 billion in foreign loans in the previous fiscal year. This is the second highest amount in history. The loan was taken to repay maturing external debt and cushion the shrinking foreign exchange reserves. Since coming into power, the Imran Khan government received $26.2 billion in loans and out of that $19.2 billion was used to repay the maturing external debt and the remaining balance was added to the external public and publicly guaranteed debt.
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