Pakistan revisits ties with Saudi Arabia to revive its crumbling economy
Dec 01, 2021
Islamabad [Pakistan] December 1, : Pakistan is trying to mend its ties with Saudi Arabia in order to get financial help to revive its crumbling economy.
While Pakistan has hailed its 'brotherly' relations with Saudi Arabia, it is evident that its new 'brotherhood' with Saudi Arabia comes at a time when Pakistan is on the brink of a financial crisis, according to the Times of Israel.
"The Pakistani economy has been faltering, with an imminent balance of payment crisis and the country increasingly dependent on external debts to stay afloat. Given its inability to negotiate with the International Monetary Fund for release of USD 1 billion," wrote Sergio Restelli, an analyst for the Times of Israel.
Despite this, Saudi Arabia has pledged financial assistance package which includes about $ US 3 billion in deposits and $ 1.2 billion to USD 1.5 billion worth of oil supplies on deferred payments to bail Pakistan of its never-ending financial crisis.
Earlier, Saudi Arabia had demanded early repayment of a $3 billion loan to Pakistan and refused to renew a $3.2 billion oil credit facility considering Islamabad's poorly performing economy.
Pakistan is desperate to get help from countries like Saudi Arabia and the United Arab Emirates compromising on its proclaimed strategic autonomy.
Despite Saudi Arabia's financial assistance, Pakistan was to blame for the souring relationship with the Arab country as it clearly lacks geopolitical acumen, economic heft, and ideological leadership had been making attempts to create a substantial international bloc, according to the Times of Israel.
Further, Pakistan failed to note that both Saudi Arabia and the United Arab Emirates share deep strategic and economic ties with India. Traditionally, India has been a more viable partner for the two countries. India's total trade with Saudi Arabia has been over $ US33 billion which is better than Pakistan.
In contrast, Pakistan's trade with Saudi Arabia has been around $ US 3.6 billion, a tenth.
Further, India-Saudi ties had been strengthened further with the signing of defence cooperation pact adding to Pakistan's problem .
