After last year’s crisis, Pakistan and Saudi Arabia pursue a reset
March 11, 2021
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After last year’s much-publicized spat between Pakistan and Saudi Arabia — culminating with Riyadh’s demand for early repayment of $3 billion in loans meant to shore up Islamabad’s foreign exchange reserves — tensions between the two countries have since cooled. Pakistan and Saudi Arabia appear to be in the midst of a reset of relations.
Riyadh has reportedly opted not to withdraw the final tranche of its $3 billion loan. Islamabad has repaid $2 billion so far. There’s also renewed talk of an Aramco oil refinery and petrochemicals complex in the Pakistani port city of Gwadar. And last month, Pakistan’s Foreign Office issued what was effectively a statement of support for the Saudi leadership after the release of the declassified U.S. intelligence report on the assassination of Saudi journalist Jamal Khashoggi.