Wednesday, March 3, 2021
Home World Trouble for Pakistan increases as UAE may demand repayment of USD 3 billion loan...

Trouble for Pakistan increases as UAE may demand repayment of USD 3 billion loan like Saudi Arabia: Reports

Pakistan has been grappling with economic woes and the situation is not likely to change anytime soon. As per reports, following the footsteps of Saudi Arabia, the United Arab Emirates (UAE) might seek repayment of its $3 million debt from the Pakistani government.

As per a report in Hindustan Times, the UAE had announced a $3 billion package for Pakistan in December 2018. But, the Arab country has not indicated its plans to extend the $1 billion dollars, payable on January 24 this year as part of the original $3 billion package. As such, Pakistan is ‘apprehensive’ that the UAE might demand loan repayment as well, amidst souring bilateral relationships.

While the Pakistani Finance Ministry did not comment on the development by dubbing it as ‘confidential’, a source in the Ministry cited by The Tribune, “In case (the UAE) does not withdraw the facility, the loan would be considered extended for one more year.” It must be mentioned that UAE had also announced $3 billion worth of deferred oil payments from Pakistan but soon cancelled the facility.

Saudi Arabia had asked Pakistan last year to repay its debt of $3 billion, which the Arab country provided as a financial support package to the latter in 2018. Besides the package, Saudi Arabia had also announced a credit facility of $3.2 billion for deferred oil payments. Pakistan, which had attempted to form an alliance with Malaysia and Turkey as ‘alternative Islamic powers’, had drawn the ire of Saudi Arabia.

Pakistan borrows from China to repay Saudi Arabia debt

According to the Pakistani Ministry of Finance and the State Bank of Pakistan (SBP), Pakistan had taken a loan from China to repay a $3 billion loan taken from Saudi Arabia. A desperate Pakistan did so because had it defaulted the payment, Saudi Arabia would have reduced its financial support.

According to the agreement between Saudi Arabia and Pakistan, the assistance provided by Saudi Arabia was for one year. It had an option to roll over the amount at the end of the year for a period of three years. Pakistan was paying 3.2 per cent interest on the $3 billion loan. Pakistan had received the first tranche of $1 billion in November 2018, second $1 billion in December 2018 and third tranche of $1 billion in January 2019.

To repay the loan from Saudi Arabia, Pakistan had borrowed from China in three instalments of USD 1 billion, 1.5 billion and 500 million respectively.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Feminism is not un-Islamic: Pakistan’s Aurat Azadi March explains ahead of Women’s Day after the rally was attacked last year

"We are against all such archaic practices that have been traditionally used to oppress women," said the video posted by Aurat March

‘Was shot at because I carried out Tiranga rally and opposed throwing of beef outside Hindu houses’: RSS activist narrates political violence in West...

In December 2019, RSS activist Bir Bahadur Singh was shot at point-blank range in his back in Kolkata’s Metiabruz area in broad daylight

As Anurag Kashyap, Taapsee Pannu and others face raid by Income Tax department, ‘liberals’ descend to cry vendetta

Liberals suffered a meltdown on Twitter after 22 locations linked to director Anurag Kashyap & others were raided by I-T Department

Metro car shed: Maha govt says it is ready to pay for disputed Kanjurmarg land, months after claiming it cost Rs 0

The disputed Kanjurmarg land, which the Maharashtra government and Aaditya Thackeray boasted of being acquired for free of cost, is currently under litigation.

Jalgaon shocker: Police officials and hostel employees accused of forcing women residents to strip dance, complaint filed

The resident girls in the hostel have alleged that police personnel and some outsiders, in connivance with some hostel employees, were allowed to enter the hostel under the pretext of interrogation.

West Bengal: Police recover arms, bombs from the house of a worker of Indian Secular Front, an ally of Congress

Police recovered shotguns, bombs & bomb-making equipment from the residence of Indian Secular Front worker Ziarul Mollah

Recently Popular

PM Modi and his mother abused live on air by a caller on a BBC radio show on Sikhs in the UK

BBC edited the program and the host offered apology after caller abused PM Modi and his mother during a live radio show

‘Inserted her hand claiming she was planting a tree’: LGBT activist Divya Dureja accused of sexual assault under pretext of shamanic ritual

A popular LGBT activist Divya Dureja has been accused of sexual assault by Elodie Gendron under pretext of a Shamanic ritual.

Aamir Khan shelves Mahabharat amidst controversies because ‘now is not the right time’: Reports

Aamir Khan has shelved his 'Mahabharat' project amidst controversies because the 'timing' is not right, reports say.

A woman molested, a father murdered, a Samajwadi Party leader accused: Here is all you need to know about the Hathras case

"Aatankwadi hain woh", Hathras victim Pooja exclaimed, expressing her angst against the SP leader for killing her father

Sourav Ganguly may attend PM Modi’s Brigade Ground rally in Kolkata on 7th March: Local media

Sourav Ganguly may attend PM Modi's rally at Brigade Ground in Kolkata on March 7, according to reports in local media.

The Hindu ‘journalist’ Suhasini Haidar puts out misinformation about ISRO satellite launch: Read details

Suhasini Haidar, National Editor of 'The Hindu', put out false information on social media in attempt to mislead the public.
- Advertisement -

 

Connect with us

253,186FansLike
521,572FollowersFollow
23,800SubscribersSubscribe