1 year deadline for Pakistan to return $3 billion to Saudi Arabia

Pakistan has to return a total of $3 billion to the Islamic state of Saudi Arabia in the tenure of 1 year only.

Saudi Arabia: Pakistan has to return a total of $3 billion to the Islamic state of Saudi Arabia in the tenure of 1 year only. This money was borrowed by the Asian country from Riyadh last year, with the motive to improve diminishing foreign exchange reserves.

Finance Minister of Pakistan, Shaukat Tarin, speaking in front of the Senate, the upper house, asserted that this money was transferred by the Saudi Fund for Development – (SFD) in October 2021 put the amount in the account of the nation’s central bank, the State Bank of Pakistan.

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He stated that “The Saudi government has told us that they can ask for their money back if Pakistan defaults at any point. Interest rates are increasing across the globe. The interest rate for Saudi loan being 4 per cent is not something bad”.

The government of Saudi Arabia earlier also provided assistance of USD 3 billion in cash deposits while also extending USD 3 billion oil facilities in 2018, but due to the disputes between both of the countries, Pakistan had to return USD 2 billion.

As part of the agreement, Saudi Arabia restored its financial aid to the Asian nation, including – USD 3 billion in deposits and USD 1.2 billion to USD 1.5 billion worth of oil supplies on deferred payments, which the Pakistan government also pledged to pay back within the deadline of one year.

The current financial state of Pakistan is deteriorating, with having millions of loans on its head, which the Asian country has to return. In short, the economy of Pakistan is facing a three-pronged challenge. It is facing skyrocketing prices of fundamental commodities such as – oil, gas, wheat, and sugar and unusually high shipping charges on its foreign trade; regionally, it is wrestling with the economic and financial fallout of an extremely volatile

Tariq Saeed

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