Pakistan returns $1 billion of Saudi Arabia's soft loan, officials say

[HAIDER]

Pakistan returns $1 billion of Saudi Arabia's soft loan, officials say
ReutersUpdated 16 Dec 2020
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Prime Minister Imran Khan in conversation with Saudi Crown Prince Mohammed bin Salman during the premier's trip to Riyadh in October 2018. — Online/File



Pakistan has returned $1 billion to Saudi Arabia as the second instalment of a $3 billion soft loan, as Islamabad reaches out to Beijing for a commercial loan to help it offset pressure to repay another $1 billion to Riyadh next month, officials said on Wednesday.
Analysts say it is unusual for Riyadh to press for the return of money. Relations between historically close friends Pakistan and Saudi Arabia suffered a strain earlier this year when Foreign Minister Shah Mehmood Qureshi, in an unusually sharp warning, asked Saudi Arabia-led Organisation of Islamic Cooperation (OIC) to stop dilly-dallying on the convening of a meeting of its Council of Foreign Ministers (CFM) on Kashmir.
Army Chief Gen Qamar Javed Bajwa subsequently visited Riyadh in August to ease the tensions. Gen Bajwa also met the Saudi ambassador in Islamabad on Tuesday.
With the $1 billion flowing out, Pakistan — which has $13.3 billion in State Bank foreign reserves — could face a balance of payments issue after clearing the next Saudi instalment.
“China has come to our rescue,” a foreign ministry official told Reuters.
A finance ministry official said the SBP was already in talks with Chinese commercial banks.
“We've sent $1 billion to Saudi Arabia,” he said. Another $1 billion will be repaid to Riyadh next month, he said. Islamabad had returned $1 billion in July.
Although a $1.2 billion surplus in the current account balance and a record $11.77 billion in remittances in the past five months have helped support the economy, having to return the Saudi money is still a setback.
Saudi Arabia gave Pakistan a $3 billion loan and a $3.2 billion oil credit facility in late 2018. After Islamabad sought Riyadh's support over human rights violations by India in occupied Kashmir, Saudi Arabia has pushed Pakistan to repay the loan.
The People's Bank of China did not respond to a Reuters request for comment, and Riyadh didn't issue any details.

 

[Norwegian]

After Islamabad sought Riyadh's support over human rights violations by India in occupied Kashmir, Saudi Arabia has pushed Pakistan to repay the loan.

What kind of idiots are working in foreign ministry?

 

[AZADPAKISTAN2009]

None sense stories

Pakistan Took a Short term loan from a friendly nation , and after few years as discussed we paid it back to thank our friend for their help

Both countries happy with the short term arrangement

It was not a grant
It was not a donation

It was a temporary borrow , and as a good friend Pakistan returned the funds after our economy was stabilized

Loan was taken 2018 - 2019 - 2020 , and as you can see 3 years have passed so we paid it on time

The repayment on time builds further trust between two close friends in region with unified stance on Kashmir and it's people's unification with Pakistan

1 Billion Dollar is no ice cream , we took it as loan we returned it

 

[Raj-Hindustani]

None sense stories

Pakistan Took a Short term loan from a friendly nation , and after few years as discussed we paid it back to thank our friend for their help

Both countries happy with the short term arrangement

It was not a grant
It was not a donation

It was a temporary borrow , and as a good friend Pakistan returned the funds after our economy was stabilized

Loan was taken 2018 - 2019 - 2020 , and as you can see 3 years have passed so we paid it on time

The repayment on time builds further trust between two close friends in region with unified stance on Kashmir and it's people's unification with Pakistan

1st time come to know that borrow money from other country to pay the loan amount to another country is called economy is stabilized.

So what is difference before and now if only lender is changed?

 

[The Accountant]

What kind of idiots are working in foreign ministry?

Its better to build reserves from own sources rather than being black mailed on a petty loan of e billion.

India dont say a word to india despite being irans biggest trade partner and supporter then why cant they accept us being neutral ?

When ksa dont want us go form a parallel forum then why dont they let us fight our case in OIC ?

If KSA want us to treat like a slave its better to focus on our own agenda.

If we can get our economy on track we r much better than gulf monarchs.

Remember once our economy is on track its gulf who need us and not the other way around.

 

[El Sidd]

Halal Dawn Article

 

[INS_Vikrant]

as Islamabad reaches out to Beijing for a commercial loan to help it offset pressure to repay another $1 billion to Riyadh next month,

So what is difference before and now if only lender is changed?

Collateral and Interest rate

 

[Norwegian]

Raat ko kia bhang pi thi tu ne ?
abhi tak uss ka asar nazar a raha hai..

Kabhi tommato 400-500 pkr, to kabhi alu 150 pkr, ab adrak 800-1000 pkr hai,

currency value afghanistan, bangladesh,nepal se bhi kam ho gaye hai..

tujhay economy stabilize lag rahi hai ?

So you called this Darnomics stabilization?

View attachment 697117


Collateral and Interest rate

@beijingwalker please teach these Indians a lesson

 

[The Accountant]

1st time come to know that borrow money from other country to pay the loan amount to another country is called economy is stabilized.

So what is difference before and now if only lender is changed?

It means u dont understand how the economy works.

 

[BlueWhales]

So you called this Darnomics stabilization?
View attachment 697121View attachment 697122View attachment 697123View attachment 697124View attachment 697126View attachment 697127View attachment 697128View attachment 697129View attachment 697130View attachment 697131

@beijingwalker please teach these Indians a lesson

to ab sara ilzam taklay per ? yeh zardari per, aur zardari musharraf per, musharraf taklay per lagata tha,
khazana khali mila, qarz pichli govt ne liya... to phir poti aye ne kia kia ?

 

[Norwegian]

to phir poti aye ne kia kia ?

Saved Pakistan from bankruptcy dear

Finance Minister says ‘Pakistan’s basic debts are so big that we are near bankruptcy’

ISLAMABAD: Finance Minister Asad Umar has claimed that Pakistan basic debts are so big that we are near bankruptcy.The Finance Minister said this in Special Q&A Session with Social Media...

www.thenews.com.pk

 

[CrazyZ]

Source has no author. Last I read up on this topic, there was no pressure to repay but it appears Pakistan repaid any way's. Seems like IK accepted his folly and moved on.

 

[Raj-Hindustani]

It means u dont understand how the economy works.

Sorry! but i really don't understand.

What I know that even India was facing crises during the early 1990s and even had deposit our golds to bank. However, we were not required take loan from another country to pay the loan because economy situation was good enough to pay the loan by ourselves.

I don't think big but I just understand with a small example if I am not able to maintain my financial expenses of my house then might I need to borrow money from someone.

However what I will do next! I will earn the money and repay the borrow amount on time. If still I am unable to repay the amount at the committed time then it means that still my economy situation is not good enough and I need to borrow money from someone else to pay the 1st amount.

 

[Bawag]

Pakistan returns $1 billion of Saudi Arabia's soft loan, officials say
ReutersUpdated 16 Dec 2020
Facebook Count
Twitter Share
0

Prime Minister Imran Khan in conversation with Saudi Crown Prince Mohammed bin Salman during the premier's trip to Riyadh in October 2018. — Online/File



Pakistan has returned $1 billion to Saudi Arabia as the second instalment of a $3 billion soft loan, as Islamabad reaches out to Beijing for a commercial loan to help it offset pressure to repay another $1 billion to Riyadh next month, officials said on Wednesday.
Analysts say it is unusual for Riyadh to press for the return of money. Relations between historically close friends Pakistan and Saudi Arabia suffered a strain earlier this year when Foreign Minister Shah Mehmood Qureshi, in an unusually sharp warning, asked Saudi Arabia-led Organisation of Islamic Cooperation (OIC) to stop dilly-dallying on the convening of a meeting of its Council of Foreign Ministers (CFM) on Kashmir.
Army Chief Gen Qamar Javed Bajwa subsequently visited Riyadh in August to ease the tensions. Gen Bajwa also met the Saudi ambassador in Islamabad on Tuesday.
With the $1 billion flowing out, Pakistan — which has $13.3 billion in State Bank foreign reserves — could face a balance of payments issue after clearing the next Saudi instalment.
“China has come to our rescue,” a foreign ministry official told Reuters.
A finance ministry official said the SBP was already in talks with Chinese commercial banks.
“We've sent $1 billion to Saudi Arabia,” he said. Another $1 billion will be repaid to Riyadh next month, he said. Islamabad had returned $1 billion in July.
Although a $1.2 billion surplus in the current account balance and a record $11.77 billion in remittances in the past five months have helped support the economy, having to return the Saudi money is still a setback.
Saudi Arabia gave Pakistan a $3 billion loan and a $3.2 billion oil credit facility in late 2018. After Islamabad sought Riyadh's support over human rights violations by India in occupied Kashmir, Saudi Arabia has pushed Pakistan to repay the loan.
The People's Bank of China did not respond to a Reuters request for comment, and Riyadh didn't issue any details.

Pakistan is currently at the cross-roads of re-aligning its geo-strategic position and foreign policy. And amid such changes, a lot of things would change for any country, for example, Indian and Russian relationship changing vis-à-vis Indian and Saudi/gulf relationship. Same goes for Pakistan as well.

-It would be good for both Pak and Saudi Arabia to mutually walk away from each other rather become hostile to each other. Let's be honest with ourselves, both countries were/are becoming liabilities for each other. Yemen war was not our fight so we did not pick it (good decision by Pak), regardless of Gulf coalition wanted our support with full spectrum. Kashmir is not a Saudi or Gulf problem, and long before the Yemen crisis, their lip service was also getting tight. So no offense, it is a kind of mutual assured divorce (mad)!

-Pak is on the losing end for the most part, our economy is just not there. Let's face it; we rely on Gulf remittances. We got to fix our economy by our own. However, no need to put or carry the dead weight of a relationship which is transactional. Move on! Find new ones

-Pak-Saudi relationship may warmup again if Biden policy (specially concerning nuclear sanctions) go lenient on IRAN then Saudis would again require a nuclear (hands-on deterrence). Any guarantees from West + Israel would not be enough! In such scenario, things may change drastically!

 

[HAIDER]

Pakistan is currently at the cross-roads of re-aligning its geo-strategic position and foreign policy. And amid such changes, a lot of things would change for any country, for example, Indian and Russian relationship changing vis-à-vis Indian and Saudi/gulf relationship. Same goes for Pakistan as well.

-It would be good for both Pak and Saudi Arabia to mutually walk away from each other rather become hostile to each other. Let's be honest with ourselves, both countries were/are becoming liabilities for each other. Yemen war was not our fight so we did not pick it (good decision by Pak), regardless of Gulf coalition wanted our support with full spectrum. Kashmir is not a Saudi or Gulf problem, and long before the Yemen crisis, their lip service was also getting tight. So no offense, it is a kind of mutual assured divorce (mad)!

-Pak is on the losing end for the most part, our economy is just not there. Let's face it; we rely on Gulf remittances. We got to fix our economy by our own. However, no need to put or carry the dead weight of a relationship which is transactional. Move on! Find new ones

-Pak-Saudi relationship may warmup again if Biden policy (specially concerning nuclear sanctions) go lenient on IRAN then Saudis would again require a nuclear (hands-on deterrence). Any guarantees from West + Israel would not be enough! In such scenario, things may change drastically!

MBS is hyper kid... he totally failed to understand Kashmir importance for Pakistan and now also for China. Older Saudi ruling class was totally aware of Pak stance on Kashmir and specially King Faisal fully supported Pakistan. But this kid .................