China pulls out Pakistan from its debt; loans 1 billion to the latter for reimbursing Saudi Arabia
December 18, 2020: Pakistan paid the second installment of the 3 billion soft loan taken from Saudi Arabia with the help of China. 1 billion was returned to the Riyadh this week and another 1 billion is due next week. According to officials, Pakistan reached out to China for a commercial loan when the Riyadh pressed the former to pay back quickly.
As accounted by analysts, it’s unusual for Riyadh’s nature to press for money, not from Pakistan, as both the nations have a long standing friendship but their relation has been stained recently.
“China has come to our rescue”- a foreign ministry official said to Reuters. He further stated that “We have paid 1 billion to Riyadh and another 1 billion will be paid next month.” Saudi Arabia gave Pakistan a $3 billion loan and a $3.2 billion oil credit facility in late 2018. when Islamabad asked support from Riyadh in matters of its conflict with India, Saudi Arabia has pushed Pakistan for requiting the credit amount.
US has also shown concern over the fact that multiple Asian countries are coming under Chinese debts. They also criticised China-Pakistan Economic Corridor plans for better infrastructure in Pakistan which involves a sum of more than 60 billion.
