Pakistan has returned $1 billion to Saudi Arabia as the second instalment of a $3 billion soft loan. The Islamabad reached out to Beijing for a commercial loan to help it offset pressure to repay another $1 billion to Riyadh next month, officials said on Wednesday.
“China has come to our rescue,” a foreign ministry official said. A finance ministry official said the SBP was already in talks with Chinese commercial banks. “We’ve sent $1 billion to Saudi Arabia,” he said. Another $1 billion will be repaid to Riyadh next month, he said.
Islamabad had returned $1 billion in July. Saudi Arabia gave Pakistan a $3 billion loan and a $3.2 billion oil credit facility in late 2018.