Pakistan returned $1 billion to Saudi Arabia last week as the second instalment of a $3 billion loan that Riyadh offered the country in
2018 to help stave off a current account crisis.
The country has been able to repay $2 billion of the huge loan with China’s help in the midst of economic adversity.
Considering the cordial ties between the two countries, a rushed repayment of such a major loan in the midst of a pandemic points
towards a bit of trouble in paradise.
This development between the relations of the two nations has transpired following Islamabad making efforts to align itself with the Turkey-Malaysia-Iran alliance in the Muslim world that Saudi sees as a challenge to its own claim of being a leader.
This emergence explains why Saudi may have asked for the repayment of the loan from Pakistan.
The deterioration became public when under Saudi pressure, Pakistan pulled out of the Kuala Lumpur Summit in Malaysia last year. Saudi Arabia threatened Pakistan with economic sanctions if Pakistan Prime Minister Imran Khan attended the meet, according to Turkish President Recep Tayyip Erdogan.
Pakistan’s National Security Advisor Moeed Yusuf says the transition is due to the changing global situation, and not on account of either