Global financial institutions and friends of Pakistan are helping the country to uplift its hobbling economy. In the latest development, Saudi Arabia and United Arab Emirates (UAE) have stopped the withdrawal of $2 billion loans that were sanctioned to Pakistan and matured in January.
Sources confirmed to News360 that the development was an achievement on the diplomatic front and personal efforts of newly-appointed Pakistan’s ambassador to Saudi Arabia, General ( R) Bilal Akbar.
The deferment in payment of loans is a sigh of relief for Pakistan when the country was under the immense pressure of external debts.
In 2019, Pakistan had collectively borrowed $US6 billion from UAE and Saudi Arabia under a special relief package for its hobbling economy. So far, Pakistan has repaid $US4 billion to both countries from it.
The officials of the Finance Ministry told News360 that the development is major as the International Monetary Fund (IMF) had warned Pakistan that it had to defer its loan payments to UAE and Saudi Arabia if it wanted to continue the program with the fund.
If the relief by both Gulf countries was not tendered, the pressure of external debts would have slumped the value of the rupee against the dollar.
It had also disrupted the roadmap set with IMF for external payments.
According to the economists, the suspension would provide a big relief to Pakistan in its external debt payments until the next budget.
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They added that the development would strengthen the rupee exchange rate.
Meanwhile, Finance Minister has also hailed IMF for its cooperation in different programs to lift Pakistan’s economy.
Pakistan’s return to IMF program is around the corner. Explaining Pakistan’s excellent coordination with the Fund, Finance Minister Dr Hafeez Sh explained in DKKKS interview how IMF helped Pakistan save its economy from economic catastrophe other economies suffered during Covid pic.twitter.com/coJdyFOecH
— Kamran Khan (@AajKamranKhan) February 6, 2021
Earlier this month, Asian Development Bank (ADB) came to rescue Pakistan’s unstable economy and assist the country’s growth as it approved a 5-year country partnership strategy (CPS).
Global financial institutions and friends are helping Pakistan to bring its economy on the right track.