Pakistan to repay $2bn KSA loan on schedule

KARACHI: Pakistan will repay US $2 billion loan to the Kingdom of Saudi Arabia (KSA) as per the repayment schedule.
According to the people familiar with the matter, Pakistan is set to return one billion dollars to Saudi Arabia in the current month, while the remaining $1 billion would likely be paid 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 Eurobonds within the next few weeks, which will likely generate around $700 million, sources further said.
In October 2018, Saudi Arabia had agreed to provide US$ 6.2 billion worth of financial package to Pakistan for three years. This included US$3 billion in cash assistance to address Pakistan’s balance of payment issue and US $3.2 billion worth of oil on deferred payments.
Pakistan has already paid back US $1 billion to Saudi Arabia in May this year out of the $3 billion financing. – TLTP