Every country is now demanding its money back from the debt-riddled Pakistan. However, the trouble of Pakistan has been reduced slightly by the United Arab Emirates.
In fact, the UAE has given Pakistan more time to repay the debt of two billion dollars. The State Department said in a statement that the decision was taken in a meeting between Foreign Minister Shah Mehmood Qureshi and UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan in Abu Dhabi on Monday. The Foreign Minister said that the UAE has assured all possible help to Pakistan.
Qureshi said that the decision reflects a warm and friendly relationship between the two countries. He thanked the UAE for its support and bilateral cooperation and for supporting Pakistan in international fora.
Earlier, the UAE was adamant on the deadline to pay its debts by 19 April. The UAE owes 2 billion dollars to Pakistan. The UAE gave this amount to Pakistan in early 2019.
In the midst of Pakistan’s battered financial situation, it has borrowed nearly $ 10 billion in loans from its allies such as China, Saudi Arabia and the UAE. This loan was taken by Pakistan to improve the position of its foreign exchange reserves and to repay the debts already taken.
Saudi Arabia has also asked Pakistan to repay the debt of $ 3 billion soon. Saudi Arabia gave a loan of $ 6.2 billion to Pakistan in the year 2018, shortly after Imran Khan became Prime Minister. The $ 6.2 billion debt package announced by Saudi Arabia included a total debt of $ 3 billion and an oil credit facility of $ 3.2 billion. Following the deterioration in the relations between Saudi and Pakistan, Saudi demanded to repay its debt as soon as possible.