Pakistan to repay US$ two billion loan to Saudi Arabia on schedule

KARACHI: Pakistan will repay US$ two billion loan to the Kingdom of Saudi Arabia (KSA) as per the repayment schedule, quoting sources ARY News reported on Monday.

According to the sources, Pakistan is set to return one billion dollars to Saudi Arabia in current month, while the remaining $1 billion would likely be paid in the next year.

Pakistan has arranged loans from alternate sources, for repayment of Saudi loans, sources in the knowledge of the matter, said.

Pakistan will borrow $1.5 billion from China, while the country will issue euro bonds within next few weeks, which will likely to generate around 700 million US dollars, sources further said.

In October 2018, Saudi Arabia had agreed to provide US$ 6.2 billion worth of financial package to Pakistan for three years. This included US$ three billion in cash assistance to address Pakistan’s balance of payment issue and US dollar 3.2 billion worth of oil on deferred payments.

Pakistan has already paid back US$ one billion to Saudi Arabia in May this year out of the three billion dollars financing.