Pakistan, on the threshold of the Bengalis, must take out a loan to repay the debt again. This loan is again granted to Pakistan by its ever-green friend, China. Also in August, China granted a billion dollar loan to Imran Khan to repay Saudi debt. Please say that Saudi Arabia has a debt of three billion dollars with Pakistan. On which Pakistan has repaid the debt of $ 1 billion.
China offers $ 1.5 billion loan
Saudi Arabia had asked Pakistan to repay the remaining $ 2 billion loan by the end of this year. In view of the deteriorating economic situation in Pakistan, Imran Khan appealed to his friend China for a rescue. After which Dragon agreed to grant a loan of $ 1.5 billion. Pakistan will arrange the remaining half a billion dollars.
Saudi Arabia withdrew its economic package from Pakistan
Faced with Pakistan’s treatment of Kashmir, Saudi Arabia withdrew its economic package in July. This package was released by Saudi Arabia in October 2018. Under this, Saudi Arabia granted Pakistan a loan of $ 6.2 billion over 3 years. This included $ 3 billion in cash assistance, while oil and gas was to be supplied to Pakistan for the rest of the money. But, hurt by the provocative statements of the Pakistani foreign minister, Saudi Arabia closed the package ending in 2021 even in 2020.
Pakistan will have to pay interest
According to the agreement, Saudi Arabia initially 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. In such a situation, Imran Khan had no choice but to take out a loan from China.
Imran Khan softened as Pakistan went limp, asking for mercy from lending countries
Imran begs to stop debt collection
Pakistani Prime Minister Imran Khan urged the international community to suspend loan payments to low-income and worst-affected countries and to reverse the responsibility of least developed countries until the end of the Corona virus outbreak . Pakistan’s economic woes have been compounded by the cash flow crisis, and the Imran Khan government is organizing financial support from global bodies, including the International Monetary Fund (IMF), to overcome the crisis.
Kangal Pakistan to take another $ 15 billion loan, total loan over 6 lakh crore
The loan will represent 90% of Pakistani GDP
According to Pakistani media, Pakistan’s public debt will reach 37.5 trillion Pakistani rupees, or 90% of gross domestic product (GDP) in a few days. The report says Pakistan will spend just 2.8 trillion rupees on debt repayment this year, 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.
Pakistan Reaches Out Due to Corona, World Bank to Request $ 2 Billion AfDB Loan
Foreign exchange reserves only $ 12 billion
Pakistan’s borrowing of $ 15 billion in one year shows the challenges it faces and the worsening debt crisis. There is no currency in Pakistan without debt. The total foreign exchange reserves of $ 12 billion with the State Bank of Pakistan come mainly from debt. Sources say the finance ministry is expected to receive a total of $ 15 billion from bilateral and multilateral lenders, commercial banks, Eurobond issuers and the IMF in fiscal year 2020-2021.