Pakistan's Prime Minister Imran Khan. (File photo)
Pakistan's Prime Minister Imran Khan. (File photo)

After Saudi Arabia, UAE could seek early repayment of loan to Pakistan

UAE could seek the early repayment of a $3 billion financial support package announced in December 2018
By HT Correspondent | Edited by Smriti Sinha
PUBLISHED ON JAN 18, 2021 01:35 PM IST

Months after Saudi Arabia had sought the early repayment of a $3 billion loan, Pakistan is facing the possibility of a similar move by the United Arab Emirates (UAE) at a time when the country is grappling with economic difficulties.

Saudi Arabia had provided Pakistan a $6.2 billion financial support package in 2018 shortly after Imran Khan became the prime minister – a $3 billion loan and a $3.2 billion deferred oil financing facility.

Following a sharp downturn in bilateral ties after Pakistan sought to form an alternative Muslim coalition with Turkey and Malaysia, Saudi Arabia initially withdrew the arrangement for deferred payments for oil purchases and then asked Pakistan last year to repay the loan.

As Pakistan prepares to pay the third and final tranche of $1 billion for the Saudi loan, the country is now facing the possibility that the UAE too could seek the early repayment of a $3 billion financial support package announced in December 2018.

Also read | Biden has already calmed the Middle East

The UAE hasn’t indicated whether it will extend a $1 billion loan – part of the $3 billion package – that will become payable on January 24, The Express Tribune newspaper reported, citing sources in Pakistan’s finance minister. The loan can be extended for a year.

“In case [the UAE] does not withdraw the facility, the loan would be considered extended for one more year,” a senior unnamed official of Pakistan’s finance ministry said.

The ministry didn’t comment on the matter, saying it was a “bilateral confidential matter”. However, the Tribune reported that the Pakistan government is “apprehensive that after Saudi Arabia’s decision to withdraw its bailout package, the UAE might also follow suit”.

The UAE had also announced a $3 billion facility for deferred oil payments for Pakistan but later withdrew the facility.

As its economic woes mount, Pakistan has turned to its “iron brother” ally, China, for financial support. Pakistan has so far taken three loans from China to repay the $3-billion loan from the Saudi, the Tribune reported.

“Beijing gave $1 billion soft loan and two separate financing lines of $1.5 billion and $500 million to pay back the Saudi debt,” the newspaper reported.

Khan had travelled to Saudi Arabia twice soon after becoming the premier to secure the financial support package, which allowed his government to negotiate a bailout with the International Monetary Fund.

Khan’s government has failed in its efforts to get the suspended $6 billion IMF programme restored. It still has to fulfil key conditions set by IMF, such as introducing a mini-budget and hiking electricity tariffs.

According to reports, Pakistan’s central bank’s foreign exchange reserves of $13.4 billion remain fragile, as these largely consist of loans. Short-term loans taken from commercial banks amounted to $4.6 billion as of last November.

SHARE THIS ARTICLE ON
Close
A medic collects a swab sample of a passenger for the Covid-19 test at a bus stand in Bengaluru.(PTI)
A medic collects a swab sample of a passenger for the Covid-19 test at a bus stand in Bengaluru.(PTI)

Central govt should cut its tax on fuel, says Tamil Nadu govt

PTI, Chennai
UPDATED ON FEB 27, 2021 07:03 PM IST
Panneerselvam, pointing to accusations by the main opposition DMK over the interim budget (2021-22), said a flawed view, holding the state government responsible for the petrol and diesel price rise, was being propagated.
Close
BJP national president JP Nadda. (File photo)
BJP national president JP Nadda. (File photo)

Making PM Modi's schemes flourish will be real tribute to saint Ravidas: Nadda

ANI
PUBLISHED ON FEB 27, 2021 06:51 PM IST
He further said that while imbibing the life of Saint Ravidas, people can dedicate themselves to social work through the path shown by him.
Close
Police teams are trying to track down the Innova in which the driver of the parked vehicle with explosives -- a Scorpio SUV -- was seen leaving.(ANI Photo)
Police teams are trying to track down the Innova in which the driver of the parked vehicle with explosives -- a Scorpio SUV -- was seen leaving.(ANI Photo)

Explosives scare near Ambani's house: Cops looking for other car

PTI, Mumbai
UPDATED ON FEB 27, 2021 06:38 PM IST
The Crime Branch of Mumbai police has recorded the statements of 25 persons in its probe so far, he said.
Close
Congress party workers greet Rajasthan Chief Minister Ashok Gehlot during his visit to Bikaner on Saturday,.(PTI)
Congress party workers greet Rajasthan Chief Minister Ashok Gehlot during his visit to Bikaner on Saturday,.(PTI)

Ashok Gehlot and Sachin Pilot attack Centre for 'stubborn stand' on farm laws

PUBLISHED ON FEB 27, 2021 06:37 PM IST
  • Rajasthan Chief Minister Ashok Gehlot and his former deputy Sachin Pilot tried to present a united face ahead of the assembly bypolls in four seats in the state.
Close
Punjab CM Captain Amarinder Singh chairing an All Party Meeting on the issue of Central Farmer Legislations and the way forward, at Punjab Bhawan in Chandigarh on Tuesday. (ANI Photo)
Punjab CM Captain Amarinder Singh chairing an All Party Meeting on the issue of Central Farmer Legislations and the way forward, at Punjab Bhawan in Chandigarh on Tuesday. (ANI Photo)

Amarinder Singh announces 50 lakh ex-gratia for kin of Punjab solider

ANI, Ludhiana
PUBLISHED ON FEB 27, 2021 06:35 PM IST
The Junior Commissioned officer is survived by his father, wife and two sons aged 11 and 13 years.
Close
Cockfights are banned but still common in rural areas of Telangana, Andhra Pradesh, Karnataka and Odisha states (AP Photo/Anupam Nath)(AP)
Cockfights are banned but still common in rural areas of Telangana, Andhra Pradesh, Karnataka and Odisha states (AP Photo/Anupam Nath)(AP)

Rooster kills owner with cockfight blade in Telangana

AFP
PUBLISHED ON FEB 27, 2021 06:28 PM IST
The bird had a knife attached to its leg ready to take on an opponent when it inflicted serious injuries to the man's groin as it tried to escape.
Close
Delhi Chief Minister Arvind Kejriwal holds a roadshow in Shalimar Bagh area ahead of byelections in five wards of North MCD and East MCD in New Delhi on Wednesday. (ANI Photo)
Delhi Chief Minister Arvind Kejriwal holds a roadshow in Shalimar Bagh area ahead of byelections in five wards of North MCD and East MCD in New Delhi on Wednesday. (ANI Photo)

Delhi Police Commissioner reviews law, order situation ahead of MCD by-polls

ANI, New Delhi
PUBLISHED ON FEB 27, 2021 06:21 PM IST
Shrivastava directed police personnel to keep a sharp vigil on borders in view of elections and the ongoing farmers' protest.
Close
Odisha reported 86 new Covid-19 cases in 21 districts.(HT Photo)
Odisha reported 86 new Covid-19 cases in 21 districts.(HT Photo)

Odisha modifies home isolation order, logs 86 new Covid-19 cases

PTI
PUBLISHED ON FEB 27, 2021 06:19 PM IST
The week-long home isolation will be mandatory for the people coming by train and flight from five high risk states like Maharashtra, Kerala, Punjab, Madhya Pradesh and Chhattisgarh.
Close
Maharashtra continues to report the highest daily new cases at 8,333. In picture - Covid-19 testing in Mumbai.(HT Photo)
Maharashtra continues to report the highest daily new cases at 8,333. In picture - Covid-19 testing in Mumbai.(HT Photo)

Covid-19 spike: What is restricted where in Maharashtra

By hindustantimes.com | Edited by Shivani, Hindustan Times, New Delhi
PUBLISHED ON FEB 27, 2021 06:16 PM IST
As of Friday evening, Maharashtra has a caseload of 2,138,154 Covid-19 cases. The death toll stood at 52,041.
Close
Bihar Chief Minister Nitish Kumar greets Chief Justice of India Sharad Arvind Bobde; Union Law Minister Ravi Shankar Prasad is also present during the inaugural function of the Shatabdi Bhawan at High Court, in Patna.(ANI)
Bihar Chief Minister Nitish Kumar greets Chief Justice of India Sharad Arvind Bobde; Union Law Minister Ravi Shankar Prasad is also present during the inaugural function of the Shatabdi Bhawan at High Court, in Patna.(ANI)

Comments against judges 'disturbing new trend': Law minister Ravi Shankar Prasad

PTI
PUBLISHED ON FEB 27, 2021 06:10 PM IST
Prasad was addressing a function here organised to mark the inauguration of a new building of the Patna High Court by Chief Justice of India S A Bobde, in presence of Bihar Chief Minister Nitish Kumar, among others.
Close
Maharashtra continues to report the highest daily new cases at 8,333. In picture - Covid-19 testing in Mumbai.(HT Photo)
Maharashtra continues to report the highest daily new cases at 8,333. In picture - Covid-19 testing in Mumbai.(HT Photo)

Six states report surge in daily new Covid-19 cases: Government

ANI, New Delhi
PUBLISHED ON FEB 27, 2021 06:05 PM IST
India's present active caseload now stands at 1.44 percent of the country's total positive cases.
Close
A health worker collects a swab sample for a Covid-19 test.(HT Photo/ Raj K Raj)
A health worker collects a swab sample for a Covid-19 test.(HT Photo/ Raj K Raj)

This is what one dose of Covid-19 vaccine will cost in Gujarat

By hindustantimes.com | Edited by Mallika Soni
PUBLISHED ON FEB 27, 2021 05:59 PM IST
“The price of Covid-19 vaccine in Gujarat will be 250 in private hospitals and it will be provided free of cost in govt hospital across the state,” Patel was quoted as saying by news agency ANI.
Close
Bombay high court and all subordinate courts in Maharashtra, except Pune, had resumed in-person hearings in December after a gap of eight months.
Bombay high court and all subordinate courts in Maharashtra, except Pune, had resumed in-person hearings in December after a gap of eight months.

Bombay High Court refuses to hear case after lawyer removes mask in courtroom

PTI, Mumbai
PUBLISHED ON FEB 27, 2021 05:48 PM IST
  • A single-judge bench of Justice Prithviraj Chavan was on February 22 hearing an appeal matter during which the appellant's advocate removed his mask in the courtroom contrary to guidelines.
Close
Varanasi: Congress leader Priyanka Gandhi speaks on the occasion of Ravidas Jayanti, at Sant Ravidas temple in Varanasi, Saturday, Feb. 27, 2021. (PTI Photo)(PTI02_27_2021_000135B)(PTI)
Varanasi: Congress leader Priyanka Gandhi speaks on the occasion of Ravidas Jayanti, at Sant Ravidas temple in Varanasi, Saturday, Feb. 27, 2021. (PTI Photo)(PTI02_27_2021_000135B)(PTI)

'True religion never divides': Priyanka Gandhi at Varanasi's Ravidas temple

Posted by Prashasti Singh | PTI, Lucknow
PUBLISHED ON FEB 27, 2021 05:36 PM IST
This is the second time in the past two years when the Congress leader has visited the birth place of Sant Shiromani Guru Ravidasji, a Congress release issued in Lucknow said.
Close
The chief minister's tweet comes after a 17-year-old boy was beaten up and stabbed for allegedly opposing three boys who were stalking his sister.(HT photo)
The chief minister's tweet comes after a 17-year-old boy was beaten up and stabbed for allegedly opposing three boys who were stalking his sister.(HT photo)

Kejriwal says Delhi's law and order situation 'in serious turmoil'

By hindustantimes.com | Edited by Arpan Rai, New Delhi
UPDATED ON FEB 27, 2021 05:43 PM IST
Delhi chief minister Arvind Kejriwal on Saturday said in a tweet, "Deeply concerned by the murder of a 8-yr old girl in Khichdipur & attack on a 17-yr old boy in Kalkaji.
Close
SHARE
Story Saved
OPEN APP