Decision on $2 billion Saudi loan next month

By: News Desk      Published: 02:41 PM, 12 Nov, 2020
Decision on $2 billion Saudi loan next month
File photo.

A decision on whether to return the $2 billion loan to Saudi Arabia or Pakistan is going to get more time for the purpose would be made next month, reported 24NewsHD TV channel on Thursday.

Sources say the agreement with the International Monetary Fund (IMF) stipulated that Pakistan would not repay the amount in question for three years. It is also mentioned in the IMF deal that the loans obtained from China and the United Arab Emirates are also not going to be returned for a period of three years.

The prevailing coronavirus pandemic has made it impossible to reimburse the borrowed money, the sources noted.

According to these sources in the finance ministry, Pakistan had received $3 billion from China and $2 billion from the United Arab Emirates.

Meanwhile, February 2021 will mark the completion of two years since the loan was acquired from Saudi Arabia and the United Arab Emirates. In case Riyadh refuses to give one-year time, Islamabad would have to pay back the amount before February next year.

On the other hand, the same sources also said that Pakistan would request both China and the United Arab Emirates to defer the repayment for a year.