Saudi Arabia asks Pakistan for $ 2 billion loan
Pakistan is living Muflissi’s life these days. Meanwhile, its biggest “donor,” Saudi Arabia, has withdrawn its $ 2 billion debt. In such a situation, Pakistani Prime Minister Imran Khan is once again ready to reach out to ever-green friend China for a new loan. It is believed that Pakistan can grant a loan of $ 2 billion (318 billion Pakistani rupees) to Saudi Arabia by taking a loan from China. Because right now there is only a billion dollars left in Pakistan’s debt repayment treasury.
Saudi Arabia withdraws financial support for Pakistan
Angered by Pakistan’s treatment of Kashmir, Saudi Arabia withdrew its financial support in May. In October 2018, Saudi Arabia announced a $ 6.2 billion 3-year financial package to Pakistan. This included $ 3 billion in cash assistance, while oil and gas was to be supplied to Pakistan for the rest of the money.
Pakistan will also pay 3.3% interest on the amount
According to the agreement, initially Saudi Arabia provided liquidity and oil facilities to Pakistan for only one year, but in subsequent years it was extended to three years. Pakistan will also have to pay 3.3% interest on this $ 3 billion cash aid.
‘Poor’ Pakistan repays loan, threatening Saudi Arabia
Saudi Arabia paid $ 1 billion in borrowing from China
Pakistan repaid Saudi Arabia’s billion dollar loan four months in advance. Sources reportedly said that if Pakistan got a similar facility from China, it would also be able to repay a $ 2 billion cash loan. In such situation, if Pakistan does not get any loan from another place, then it will be difficult to repay.
Saudi Arabia shocked ‘poor’ Pakistan, stopped lending oil
The loan will represent 90% of Pakistani GDP
Pakistani media reports Pakistan’s public debt will rise to PKR 37.5 trillion, or 90 percent of gross domestic product (GDP) by June of this year. The report says Pakistan will spend just 2.8 trillion rupees this year on debt repayment, or 72 percent of the Federal Board of Revenue’s estimated tax revenue. When the Pakistani government Tehreek-e-Insaf (PTI) came to power two years ago, the public debt was Rs 24,800 lakh crore, which is growing rapidly.