Pakistan seems to be in deep waters as there are chances of being asked to repay the loan taken from the UAE. As per reports, Saudi Arabia had pushed Pakistan to repay the loan of USD 3 billion.
In 2018, when Imran Khan took charge as the Prime Minister of the country, Saudi Arabia had extended a loan of USD 6.2 billion as financial support. However, after the fallout in bi-lateral ties following Pakistan seeking to form an alternative Muslim coalition with Turkey and Malaysia, Saudi Arabia stepped back from it and then asked for repayment of the loan.
As Pakistan is gearing up to pay the last portion of USD 1 billion, there lie chances of UAE asking for early repayment of USD 3 billion financial support package which was announced in 2018. “As of now, the UAE has not indicated if it will extend a USD1 billion loan part of the USD 3 billion packages that would be payable on January 24,” a report said.
The report further quoted a senior official of the Pakistan Finance Minister who said in case UAE does not withdraw the facility, the loan would be considered extended for one more year. Also, Pakistan is unsure about if Saudi Arabia withdraws its bailout package, the UAE may do the same too. Pakistan has not asked for a helping hand from China and so far has taken three loans to repay the USD 3 billion to Saudi Arabia. “Beijing gave USD 1 billion soft loan and two separate financing lines of $1.5 billion and $500 million to pay back the Saudi debt,” the report said.