Shehbaz Sharif in Big trouble as UAE set to teach Pakistan a lesson, denies to provide relief to Islamabad

To recall, the United Arab Emirates had earlier extended the USD 2 billion loan for just one month, which had intensified financial pressure on cash-strapped Pakistan.

New Delhi: Amid the ongoing tensions between Saudi Arabia and the United Arab Emirates (UAE), Pakistan finds itself stuck in an increasingly uncomfortable position. It is important to note that Pakistan has openly supported Saudi Arabia and signed a defense deal. Now, it is set to provide military assistance to Saudi Arabia as well. However, Pakistan’s growing closeness with Saudi Arabia has not gone down well with the UAE. According to the reports, the UAE has refused to extend Pakistan’s USD 2 billion loan for two years.

Reports further added that the Shehbaz Sharif-led Pakistani government has made repeated requests to the UAE authorities, but they have only given time until April 17 to repay the loan. After Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar reached out, the UAE granted just a two-month short-term relief.

ALSO READ: ‘US used Pakistan worse than toilet paper, and then threw us away’: Khawaja Asif

As per Geo News report quoting official sources, the UAE has not only refused to extend the loan for one year but will also charge Pakistan a hefty 6.5% interest rate. They added that formal approval is expected soon.

Add India.com as a Preferred Source

Here are some of the key details:

After failing to get relief from the UAE, Pakistan has turned to the International Monetary Fund (IMF).
Pakistan wants the IMF to release a $1 billion loan tranche.
In total, Pakistan is set to receive $7 billion under the program.
Several analysts believe that Pakistan’s growing closeness with Saudi Arabia has not gone down well with the UAE.
Recently, the UAE president visited India and signed several major agreements.

Which countries does Pakistan owe debt to?

Talking to the media, a spokesperson for Pakistan’s Foreign Ministry said that Ishaq Dar had spoken to UAE officials regarding the matter. However, he did not disclose the new deadline for repayment. To recall, the United Arab Emirates had earlier extended the USD 2 billion loan for just one month, which had intensified financial pressure on cash-strapped Pakistan. The government of Shehbaz Sharif had requested a two-year extension, but the UAE rejected the proposal.

Pakistan has to repay a total of USD 3 billion to the UAE. The Shehbaz government has been repeatedly requesting a deferment. This year, Pakistan is seeking to roll over nearly USD 12 billion in foreign loans, including USD 5 billion owed to Saudi Arabia, USD 4 billion to China, and USD 3 billion to the UAE. Pakistani leaders have been frequently visiting the UAE, but its government has shown no change in stance.

Source link

The Times Of Bengal