Saudi Arabia pressurizes Pakistan to repay loans

According to a Baaghi TV report, Prime Minister Imran Khan delivered a speech last week on the one-year anniversary of the end of the special status of Occupied Kashmir.

Pakistan’s Army Chief General Qamar Javed Bajwa is being sent to Saudi Arabia this weekend to ease growing diplomatic tensions. Saudi Arabia is demanding early repayment of a 3 billion dollar loan from Pakistan.

According to the news agency, a dispute has started between the two longtime allies. Saudi Arabia is putting pressure on Prime Minister Imran Khan’s government and pushing Pakistan into the arms of its second traditional ally Beijing.

Riyadh has demanded repayment of part of the 3 billion dollar loan from Pakistan and has also suspended the 3.2 billion dollar oil loan facility due to a dispute over New Delhi over Indian-administered Kashmir.

According to the news agency, people close to the government informed that in July, Saudi Arabia forced Pakistan to repay a 1 billion dollar loan approved in 2018. According to people close to the government, the two sides are now in talks to pay off the remaining debt.

According to the news agency the president of a private Pakistani bank said, “The Saudis have demanded the return of another 1 billion dollar.”

People familiar with the matter in Islamabad said that the government had asked Army Chief General Qamar Javed Bajwa to be sent to Saudi Arabia to try to improve relations with Riyadh.

In August last year, the Modi government revoked the special status of Kashmir. Saudi Arabia has repeatedly ignored the demands of the Pakistani Prime Minister for talks on Kashmir.

Arif Rafique, President of Wazir Consulting, had such a relationship with Muhammad bin Salman, the Prime Minister of Pakistan, that he used the private jet of Saudi Crown Prince Muhammad bin Salman. He was forced to enlist the support of other Muslim countries, including Turkey and Malaysia. Pakistan was to repay the Saudi debt by the end of this year and in 2021 in installments. China is not only Pakistan’s main choice but to some extent it is only becoming an option.

Pakistan’s central bank has only $ 12.5 billion in foreign reserves, representing more than three months of imports. The country has also been forced to suspend its 6 billion dollar IMF program, citing economic woes caused by the corona virus epidemic.

According to the news agency, a senior government official said that China had given a loan of 1 billion dollar to Pakistan immediately after the decision of Saudi Arabia to cut off aid and more could be offered.

“Just hours after Saudi Arabia demanded the repayment of the loan to Pakistan, China offered to keep 1 billion dollar with our SBP,” a senior government official said.

Friendly relations between Pakistan and Saudi Arabia came to the fore last week when Foreign Minister Shah Mehmood Qureshi issued an ultimatum to the OIC to convene a ministerial meeting on Kashmir or their government to hold its own meeting of Islamic countries.

“Crown Prince Muhammad bin Salman wants a more balanced relationship with India, which has made Pakistanis very sensitive,” said Sajan Gohal, a South Asia expert at the London School of Economics. “This is a significant shortcoming for Pakistan-Saudi relations right now. Relationships are strained.”

The Saudi government’s media office declined to comment on the report.