Interest Matter

0
81

Naseebullah Khan
The Kingdom of Saudi Arabia has approved a 4.2 billion package (3 billion USD cash deposit, and 1.2 billion USD for Oil deferred payment) for Pakistan for 1 year with strict conditionalities. The conditionalities are as under: 1. 3 billion cash deposits which Saudi Arabia provides could be withdrawn anytime by giving a three days notice to Pakistan. 2. 4 pc interest will be applicable on Cash. 3. 3.8 pc interest will be applicable on oil deferred payment facility of purchasing Oil of 100 million USD per month. 4. If Pakistan doesn’t fulfill any condition, the Kingdom of Saudi Arabia will declare Pakistan as default. 5. If Pakistan fails to accomplish any international obligation Saudi Arabia considers it as default too. 6. It state bank of Pakistan does not fulfill any other debt consideration, Saudi Arabia considers Pakistan as default. 7. If Pakistan does not remain a member of the IMF, it will also be declared as default. 8. If in a case, Pakistan defaults, it will have to surrender its sovereign immunity. It means, Saudi Arabia can attach any international property owned by Pakistan, abroad with it. 9. In case of dispute the Saudi law will be applicable. The current loan facility is harsher than the previous one of 2018. On the current facility, Pakistan will have to pay 120 million dollars as interest in 1 year which was 24 million as compared to the previous package of 2018.Interest matters. It has no religion, no morality, no creed, and no cast. When someone does not act as per the whims of others, conditions for friendship rise abruptly. Beggars can never be choosers. We have to settle our home in order. The time has not passed yet. An understanding for at least ten years for continuous economic policies could bring the collapsed economy on trackback. Until and unless we adopt unanimous economic policies without discontinuity, we would have no choice rather bow before the brutal conditions of debt providers