ISLAMABAD: India's neighbouring country Pakistan has faced the heat of the coronavirus pandemic. The economy of the country was hit by the corona pandemic. Meanwhile, Pak has returned $1 billion to Saudi Arabia as the second instalment of a $3 billion soft loan. 
According to the official. Pak has returned $1 billion to Saudi Arabia as the second instalment of 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.

Analysts say it is unusual for Riyadh to press for the return of money. But relations between historically close friends have been strained lately between Pakistan and Saudi Arabia. With the $1 billion flowing out, Pakistan which has $13.3 billion in central bank foreign reserves - could face a balance of payments issue after clearing the next Saudi instalment.

A finance ministry official said Pak's central bank was already in talks with Chinese commercial banks, including the debt swap option. He said, "We've sent $1 billion to Saudi Arabia," he said. Another $1 billion will be repaid to Riyadh next month." Islamabad had returned $1 billion in July. A finance ministry spokesman declined to comment, saying these are "bilateral confidential issues". The central bank also refused to comment, and the foreign office didn't respond.

Also Read:

'Turkey’s purchase of S-400 defense system will endanger US military' warns Mike Pompeo

Thailand eases corona norms tourists before peak travel

Singapore's Changi airport goes sub-zero for Covid-19 vaccine transport plan