Pakistan has reportedly returned $1 billion to Saudi Arabia as a second instalment of a $3 billion soft loan, as Islamabad reaches out to Beijing for a commercial loan to help it offset pressure to repay another $1 billion to Riyadh next month, reports said on Wednesday.
Analysts say it is unusual for Riyadh to press for the return of money. But relations have been strained lately between Pakistan and Saudi Arabia, historically close friends.
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Another $1 billion will be repaid to Riyadh next month, reports 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. After Islamabad reportedly sought Riyadh’s support over alleged human rights violations in Kashmir, Saudi Arabia has pushed Pakistan to repay the loan.
