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After all, Why Does Saudi Arabia Give so Many Loans to Pakistan?

After May, the currency of Pakistan fell by 13.6 percent. Even now the price of one dollar is around Rs 173. In such a situation, the question is that when the World Bank and the International Monetary Fund have also refused to allow Pakistan to take more, then why is Saudi Arabia giving loans to this country.

The financial condition of Pakistan is getting worse every day.

In 2018, the GDP of Pakistan was $ 315 billion, which has now reached $ 255 billion. The market cap of the Karachi Stock Exchange was $112 billion, which has now grown to $43.7 billion. The per capita income in Pakistan was $ 1540 annually in 2018, which has now increased to $ 1140. In the midst of all this, Saudi Arabia has proved to be a great helper of Pakistan.

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Saudi has recently said to give 3 billion rupees to Pakistan.

This amount will be deposited in the Central Bank of Pakistan. In such a situation, the question is when the World Bank and the International Monetary Fund have also refused to allow Pakistan to take more. Why is Saudi Arabia giving loans to this country? What would it benefit him?

Pakistan is in debt

According to a report by Al-Jazeera, the enmity between Iran and Saudi is old. Many analysts believe that Saudi wants to keep Iran under control through Pakistan. Taha Siddiqui, an award-winning journalist in exile from Pakistan, living in France, wrote an article in this regard in Al-Jazeera on 16 February 2019. It said that Saudi tries to buy the loyalty of the financially troubled Pakistani government through economic packages and promises of investment. According to him, he makes policies on the Pakistani borders.

Pakistan’s currency depreciates in rupee

After the month of May, the currency of Pakistan fell by 13.6 percent. Even now the price of one dollar is around Rs 173. Pakistan’s foreign exchange reserves stood at $ 17.93 billion at the end of last year. In the first week of September this year, it had reached $ 19.96 billion. In such a situation, this bailout of Saudi Arabia is very important for the foreign exchange reserves of Pakistan.

Taha Siddiqui further wrote in his article

Saudi lending is not a new thing in the relations between the two countries. Islamabad has always been close to Riyadh because of Saudi money and American policy. When Zia-ul-Haq ousted Zulfikar Ali Bhutto, who leaned towards Left ideology, from power in 1977. This relationship came to the fore. This was also done to come closer to America.

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