In another major embarrassment for Pakistan and Imran Khan government, the United Arab Emirates (UAE) has demanded its USD 1 billion back, sending top officials in the country in panic mode.
The money was deposited with the State Bank of Pakistan (SBP), which is the central bank of the country. The money is demanded as the amount has reached its maturity.
Given the financial situation of Pakistan, it has pleaded to the UAE that returning such a huge amount can impact its economic situation right now.
Meanwhile, multiple attempts have been made to reach out to UAE, especially to the Crown Prince by top Pakistani officials. So far, there hasn’t been any response.
It is no secret that Pakistan’s economy is in dire straits. According to the World Bank estimate, amid the COVID pandemic, Pakistan’s real GDP growth is estimated to have declined from 1.9 per cent in FY19 to -1.5 per cent in FY20.
Earlier this year, the International Monetary Fund (IMF) and Pakistan reached a staff-level agreement to release USD 500 million as part of the larger loan pact. The year 2019 saw the international financial institution agreeing to provide a USD 6 billion loan to the country to rein in the debt crisis in exchange for reform measures.
