ISLAMABAD: Saudi Arabia and the United Arab Emirates (UAE) have not withdrawn loans worth $2 billion that matured last month, signalling that relations between Pakistan and the two key Gulf nations are getting better.
According to a report, a senior government official, Saudi Arabia has retained the remaining $1 billion cash deposit.
The kingdom had earlier withdrawn $2 billion out of $3 billion loans that it had extended in late 2018 to help Islamabad avoid default on international debt repayments. Pakistan’s foreign minister had said in December that the loans were withdrawn due to a slump in crude oil prices.
The local media outlet also stated that the UAE has rolled over $1 billion deposit for another year.
Both the loans matured in the fourth week of January.
Prime Minister (PM) Imran Khan had obtained $6.2 billion financial support package from Riyadh in October 2018 and another $6.2 billion had been agreed by the UAE. However, the UAE subsequently disbursed only $2 billion.
