Saudi Arabia was the support of Pakistan’s sinking boat, but till when will any country help anyone. That’s why Saudi changed its loan policy.
If the horse befriends the grass, will the brother eat it? I had heard this saying a lot in North India, but when I saw this written on a grocery store, I understood more. You must have told the meaning of this saying, but still let me tell you that if a person does business, he wants profit. If he gives away his things for free or in recognition for free or at low prices, then he will be at a loss. Well, come to the point. The situation in Pakistan has become worse. In the condition of a pauper, there are two children of bread. In such a situation, this country is demanding loan. He is already burdened with debt. In such a situation, it has now been made clear to Saudi Arabia that it will give loan to Pakistan with conditions.
of Pakistan There is currently 80 per cent debt on GDP, out of which 40 per cent is foreign debt. The inflation rate is running above 30 percent. Meanwhile, Pakistan had hope from Saudi Arabia. During the annual meeting of the World Economic Forum (WEF) in Davos, the statement of Saudi Finance Minister Mohammad Al Zeidan must have hit Pakistan like an arrow. But Saudi Arabia doesn’t help any country unconditionally? What are the reasons behind this? In fact, Saudi Arabia’s Crown Prince Mohammed bin-Salman had talked about considering increasing investment in Pakistan to $10 billion on January 10 this month.
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Why did Saudi Arabia have to take the decision?
Saudi Arabia is the world’s largest oil exporting country. He has been providing financial help to the countries with tight economy around him. Pakistan is also one of them. Which is also in dire need of these 10 billion dollars. Saudi has been depositing billions of dollars in the central banks of those countries. Now this decision is being linked to the signs of recession in the global economy and the decline in energy revenue last year. The situation has changed due to the war between Russia and Ukraine. Every country has been affected by it. The conditions of European countries have also worsened. Saudi Arabia is also afraid that if it earns from investing in that country, it will be more beneficial than the amount of interest it gets in making direct deposits.
Saudi Arabia’s big conditions in front of Pakistan
economist Akash Jindal Told that any country serves its own interest by wearing it all. Saudi is also doing the same. After all, calling it an Islamic country, how long will you keep taking such help from it and it will keep giving it. He told that now under the new condition, Pakistan will have to fulfill the conditions of the IMF. There are four types of conditions in this. Firstly, under the IMF program, Pakistan will have to increase the prices of oil and gas. The second condition is that Pakistan will have to increase the tax rate. These can be many different types of taxes. The exchange rate has to be corrected.
Saudi wants Pakistan’s situation to improve soon
According to Akash Jindal, Saudi Arabia is taking all these steps to lighten the burden on its economy. When any country helps another country, it wants its condition to improve. As Saudi also wants for Pakistan. If his condition is right then only he will be able to return his money. According to a BBC report, according to the IMF’s estimate, Pakistan’s foreign debt will be around $ 138 billion by the end of the financial year in June this year. According to estimates, $ 103 billion of this is government debt. Pakistan has to pay a debt of $ 21 billion this year and a total of $ 75 billion by June 2026. From where will Pakistan bring this money, I do not understand.
Egypt’s condition is very bad
Egypt is the most populous country in the Arab world. It is also struggling with the shortage of foreign exchange reserves. Like Pakistan, Egypt also has hope from Saudi Arabia, but Saudi has tied up to invest in Egypt’s infrastructure, real estate and pharma. In an interview on Tuesday, the Saudi finance minister had said that he would continue to help Egypt, but not only through direct deposits but through investments.
Pakistan panicked by the announcement of Saudi Foreign Minister
He had said that as a country, we have decided that now we will not help the allied countries in the way we used to do earlier. Earlier we used to provide direct and unconditional financial help. They used to deposit unconditionally in their treasury. Now this will not happen. Zedan further said that we want the countries to which we give help, to improve their economic infrastructure. We are ready to help them in this work, but they will also have to do economic reforms. Now difficulties have arisen in front of Pakistan in this.
Pakistan will become defaulter
Pakistan’s former Finance Minister Miftah Ismail says that the world’s debt on Pakistan is about $ 100 billion and the debt of $ 21 billion has to be repaid in this financial year. Pakistan has to repay the debt of about 75 billion dollars for the next three years. If this does not happen, Pakistan will be declared a defaulter, as was done to Sri Lanka last year. This is done to those countries who are unable to repay their debt on time.
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