Pakistan pat back second instalment of $3 billion Saudi Loan

Shares
Pakistan pat back second instalment of $3 billion Saudi Loan

ISLAMABAD – Pakistan has returned $1 billion to Saudi Arabia as a second instalment of a $3 billion soft loan after China getting financial assistance in wake of commercial loan from China.

Islamabad paid first instalment of $1 billion to Riyadh in August this year while the third and last instalment will be repaid in January 2021.

With the $1 billion flowing out, Pakistan - which has $13.3 billion in central bank foreign reserves - could face a balance of payments issue after clearing the next Saudi installment, the Reuters reported citing officials.

An official of the foreign ministry told the news agency that China had come to rescue Pakistan in this situation.

China has reportedly agreed to provide financial aid to the tune of $1.5 billion to Pakistan for pay off the loan of Saudi Arabia.

Source: link