With the help of Saudi Arabia, Pakistan repaid UAE’s loan of 3.45 billion dollars, also gave the last installment of 1 billion dollars.

Islamabad. Pakistan by Saudi Arabia After receiving financial assistance from United Arab Emirates The entire loan has been repaid. According to the State Bank of Pakistan, the country repaid the outstanding loan of $3.45 billion ahead of schedule.

It was reported that out of this total amount, $2.45 billion had already been paid, while recently the last installment of $1 billion was also deposited. This payment was possible after the economic assistance that Pakistan recently received from Saudi Arabia.

UAE had set the deadline

United Arab Emirates had given Pakistan a deadline to repay the entire loan by the end of this month. This loan was taken in the year 2019. Initially Pakistan tried to extend the time for payment, but UAE was not ready for it.

After this, Pakistan initiated financial help from countries like Saudi Arabia and Qatar, after which this payment became possible.

Diplomatic reasons also became the reason

According to experts, there were not only economic but also diplomatic reasons behind this hasty payment. Due to the changing political circumstances and regional equations of the Middle East, UAE increased the pressure on Pakistan to repay the loan.

It is being told that UAE’s displeasure over Pakistan’s interference in some international issues and regional alliances was also a reason, due to which it showed strictness on loan repayment.

Pakistan still under heavy debt burden

Although Pakistan has repaid the UAE’s debt, but the country still owes a huge foreign debt totaling about $130 billion.

the largest part of China from which Pakistan has taken a loan of about 69 billion dollars. Other than this Saudi Arabia, Qatar and international organizations such as International Monetary Fund Loans have been taken on a larger scale than this.

Economic challenges persist

Experts believe that repayment of UAE’s debt is definitely a relief for Pakistan, but the country’s economic challenges are not over yet. Issues like foreign debt, inflation and economic stability still remain a major challenge for Pakistan.

In the coming times, it will be very important for Pakistan to implement economic reforms and attract foreign investment, so that it can come out of this debt pressure.