Pakistan has paid 1 billion in the second tranche of a loan to Saudi Arabia and has approached Beijing for a commercial loan next month to repay another 1 billion.
According to foreign news agency Reuters, analysts say it is unusual for Riyadh to push for a refund, but historically close relations between Pakistan and Saudi Arabia have been strained in recent times. Have happened
After the payment of 1 billion, the foreign exchange reserves of the SBP have come down to 13 13.3 billion and after the payment of another installment of 1 billion to Saudi Arabia next month, Pakistan may face a balance of payments problem.
"We have sent 1 billion to Saudi Arabia and another 1 billion will be paid next month,"
Pakistan repaid 1 billion of the 3 3 billion loan to Saudi Arabia in July.
Although the current account balance surplus of 2 1.2 billion and a record remittance of 11.77 billion in the last five months have helped the country's economy, the return to money to Saudi Arabia is still a setback.
At the end of 2018, Saudi Arabia had given Pakistan a loan of 3 billion and an oil credit facility of 3. 3.2 billion.
Saudi Arabia had demanded repayment of the loan from Pakistan after Islamabad sought support from Riyadh against India's human rights violations in occupied Kashmir.
To ease tensions between the two countries, Army Chief General Qamar Javed Bajwa visited Riyadh in August and recently met with the Saudi ambassador to Pakistan.
The People's Bank of China did not respond to a request for comment, but Riyadh did not provide further details.
