Saudi Arabia seems to refuse $2 bn rollover loan to Pakistan

 ISLAMABAD: Saudi Arabia may not extend rollover loan to Pakistan amounting $2 billion. So, in order to cover the gap of foreign currency reserves Islamabad is trying to find other avenues. For that purpose, UAE is also not willing regarding $2 billion loan deposits whereas it is becoming due in next few months.

Islamabad on Monday in a formal request asked Saudi Arabia to provide a loan of $2 billion with a view that it would let one more year to continue with the requirement of IMF program, official sources added. However, the officials are yet to wait for the formal response of KSA.

It is anticipated that in the next few weeks KSA’s leadership would extend formal response to Pakistan. However, since the Special Secretary Finance Mohsin Chandana is posted to Communication Ministry, no appointment is made until now about official spokesman to discuss the issue with.

The official sources upon contacting added that Pakistan was expecting that Riyadh would extend another rollover loan but the case is other way round. Resultantly, Pakistan is looking to search other routes including Chinese or commercial loans to fill $2 billion deficit in foreign exchange reserves.