Pakistan paid back Saudi Arabia $1 billion out of $3 billion loan that it secured one and a half year ago to avoid default on international debt obligations. China come forward and extends $1 billion in loan to help Pakistan to avoid any adverse impact of the partial withdrawal of the Saudi lifeline
In October 2018, Saudi Arabia agreed to provide $6.2 billion worth of financial package to Pakistan for 3 years. This package included $3 billion in cash assistance and $3.2 billion worth of annual oil and gas supply on deferred payments. As per the agreement, Saudi cash and oil facility was for 1 year with an option to roll over the amount at the end of the year for a period of 3 years. Pakistan was paying 3.2% interest on the $3-billion facility, according to the information that the Ministry of Finance shared with the National Assembly.
The PTI government took over $13 billion in foreign loans in the previous fiscal year. It is the second highest amount in history to repay maturing external debt and cushion the shrinking foreign exchange reserves. PTI government received $26.2 billion loan and out of that $19.2 billion was used to repay the maturing external debt and the remaining balance was added to the external public and publicly guaranteed debt.