It never rains but, it pours for Pakistan! UAE demands back its USD 1 billion back from Pak

Islamabad, March 13: United Arab Emirates (UAE) has sent shock waves across Pakistan. UAE has demanded its USD 1 billion back from the PM Imran Khan-led Pak government. UAE has given 24 hrs deadline to Pakistan to return the whopping USD 1 billion amount that it had loaned from UAE. This UAE's step has given panic attacks to Pakistan and Imran Khan.

 

 

According to reports, the UAE has deposited the money in the Central bank of the country State Bank Of Pakistan (SBP). UAE has demanded the amount back as it has reached its maturity.

 

After the demand, the Pakistani officials have made several attempts to reach out to Crown Prince for seeking an extension in time to return the loan. However, they didn't get any response from the UAE sides. Islamabad has cited its debt-ridden economy and the impact of the COVID-19 pandemic as a reason behind the delay in the return of the loan amount.

 

 

Pakistan is currently is in dire straits state. According to the World Bank estimate, amid the COVID pandemic, Pakistan’s real GDP growth is estimated to have declined from 1.9 percent in FY19 to -1.5 percent in FY20.

 

Apart from the UAE, earlier Saudi Arabia also asked Pakistan to repay the loan last year. After which, Pakistan took the money from its all-weather friend China and paid back Saudi Arabia $1 billion out of a $3 billion loan to avoid default on international debt obligations. The country is facing a huge debt crisis and struggling to get financial support from international bodies.

 

The IMF and Pakistan signed a staff-level agreement earlier this year to release $500 million as part of a larger loan agreement. In 2019, the international financial institution agreed to lend the country $6 billion to help it deal with its debt crisis in return for reforms.