Pakistan to Delay Loan Repayment to KSA & UAE By a Year

Pakistan is seeking to roll over $4 billion loans that it obtained from the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) to avoid depleting the foreign exchange reserves, a national daily reported on Thursday.

The PTI government is facing the unavoidable decision to seek this rollover for another year under arrangements by the International Monetary Fund (IMF) program. According to news reports, Finance Ministry officials are hopeful that the two countries will be ready to roll over the outstanding amount of $4 billion.

The loans in question will be maturing from November 2020 to February 2021. The KSA provided 3 loan deposits worth $1 billion each in November 2019, December 2019, and January 2020. Of these, $1 billion has already been repaid by Pakistan.


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The UAE also loaned Pakistan $2 billion in January and February 2020, which will be maturing early next year. Pakistan may also have to seek a rollover of another $3 billion from China.

As of October 23, 2020, the State Bank of Pakistan’s (SBP) foreign exchange reserves stood at $12.121 billion, and a significant proportion of it consists of foreign loans. Pakistan has received the Extended Fund Facility (EFF) for $6 billion from the IMF, which includes the provision for the rolling over of the above-mentioned loans.

  • We are thankful to Kingdom of Saudi Arabia and United Arab Emirates that they supported our new government and safe our economy.

    We should realize our true friends.

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