Pakistan will return $1 billion to Saudi Arabia this week with the help from China that agreed to lend Islamabad $1-1.5bn on a short notice to pay back the Saudi loan.
It may be noted here that Saudi Arabia had provided Pakistan a financial package, originally estimated at $6.2 billion, to help the government of Prime Minister Imran Khan to avoid looming default on international debt obligations two years ago.
However, due to apparent strain in ties, the Saudis have already suspended the oil facility and taken a billion back. Pakistan paid it back as a first tranche in May this year. Pakistan returned $1 billion to Saudi Arabia after taking an equal amount of loan from China. Reports claim that the next tranche will be paid by the coming month to clear the remaining Saudi dues.
The government has also not been able to get the suspended $6 billion IMF programme restored, which is making it difficult for it to continue uninterrupted foreign inflows.
By Sept last year, Prime Minister Imran Khan-led government had admitted to taking $10.37 billion debt from different countries and international lenders.
In a written reply to a question in the National Assembly, Minister for Economic Affairs Hammad Azhar had said the Pakistan Tehreek-e-Insaf (PTI) government secured $10.37 billion from various governments and international institutions from August 14, 2018, to September 30, 2019.
The government, during this period, received $1.54 billion from China, $151.79 million from Saudi Arabia, $68.6 million from France, $0.4 million from Germany, $62.48 million from Japan, and $0.01 million from Kuwait.
