Saudi Arabia pulls support for Pakistan as Kashmir tiff widens: NikkeiAsian

asad.kiyani

Senator (1k+ posts)
Saudi Arabia pulls support for Pakistan as Kashmir tiff widens

As Riyadh takes India's side, China comes through with $1bn for Islamabad



KARACHI -- Pakistan last week repaid a $1 billion Saudi loan that was called in after Pakistan began insisting that Saudi Arabia allow it to marshal the Islamic world's support on the Kashmir issue.

The $1 billion to repay the loan came from China in the form of another loan.

The original loan was a part of a $6.2 billion package announced by Saudi Arabia in November 2018, when Islamabad was struggling with a rapidly expanding trade deficit and declining foreign reserves. The package included $3 billion in loans and a $3.2 billion oil credit facility. Saudi Arabia at the time was something of a white knight, providing much-needed cash before the International Monetary Fund approved a $6 billion bailout in July 2019.


According to Pakistani media, the oil credit facility was suspended in May, with the Saudis later asking Pakistan to also repay the loan in full.

The countries' relations deteriorated quickly, beginning in February when Saudi Arabia turned down a request by Pakistan to convene a special meeting of the Council of Foreign Ministers of the Organization of Islamic Cooperation. Islamabad did not back down, demanding to use the OIC to pressure India on the Kashmir issue. It was then that Saudi Arabia decided to call in the loan.



The OIC is a group of 57 Muslim countries that is largely guided by Saudi Arabia.

India and Pakistan have been disputing claims over Kashmir since gaining their independence from Britain in 1947. Each of the neighbors controls parts of Kashmir, but they also have overlapping claims.

Since 1963, China has controlled the Aksai region of Kashmir. Lately, China has adopted an aggressive posture toward Kashmir that favors Pakistan. This has resulted in a number of border clashes, including ones with India that erupted May and June.

Shah Mahmood Qureshi, Pakistan's foreign minister, has continued openly demanding that Saudi Arabia convene an OIC council meeting.

Last week in a TV interview, he said, "Today, I am telling the OIC to convene the meeting of the council of foreign ministers. If they cannot do it, then I will be compelled to ask the prime minister [Imran Khan] to call a meeting of Islamic countries [Iran, Turkey and Malaysia] that are ready to stand with us on the issue of Kashmir."

The latest developments have also cast doubt on the future of memorandums of understanding that call on Saudi Arabia to invest $20 billion in Pakistan; they were signed during Saudi Crown Prince Muhammad bin Salman's visit to Pakistan in February 2019.

The proposed investments include $10 billion in an oil refinery in Gwadar, a port city that because of its strategic location at the mouth of the Gulf of Oman has made it a focal point of the $50 billion China-Pakistan Economic Corridor, itself a big part of China's much wider Belt and Road Initiative.

Experts believe Saudi Arabia is reluctant to become entangled in the efforts of Pakistan and China to contain India.

"Saudi Arabia is closely allied with the U.S., which may also be [applying behind-the-scenes pressure on] Saudi Arabia to stay away from Chinese initiatives," said Jeremy Garlick, an assistant professor with the Jan Masaryk Center for International Studies at the University of Economics in Prague.

Garlick is also the author of "The Impact of China's Belt and Road Initiative: From Asia to Europe."

"It is probably less risky for Saudi Arabia to withdraw its support for Pakistan than to stay in Gwadar," Garlick told the Nikkei Asian Review, "since Pakistan is so closely allied to China and both are forming a wedge against India."

James M. Dorsey, a senior fellow at the S. Rajaratnam School of International Studies at Singapore, believes close economic ties between the Saudis and India are driving the kingdom's change of heart toward Pakistan.

"Saudi Arabia has significant investments in India, which is also a major buyer of oil from the kingdom. Consequently, Riyadh has been less forthcoming to extend support to Pakistan's stance on Kashmir," Dorsey told Nikkei.




Other experts say the Saudis are on a diplomatic high wire and are sure to try to find a balance. "Saudi Arabia also needs Pakistan due to its proximity with Iran and being home to world's largest Shiite minority," Dorsey said. He added that the Saudis will try to do something on the issue of Kashmir to placate Pakistan but not go so far as to provoke India.

Experts believe the Saudis are not alone in exercising caution, that Beijing is also wary. "China needs Saudi oil," Garlick said, adding that it will "play a waiting game at this stage and try not to become involved in Middle Eastern politics for as long as possible."

Einar Tangen, an author and economic affairs commentator based in Beijing, maintains that China's approach to the Islamabad-Riyadh tiff is more practical than ideological. "China needs multiple land and sea routes to protect its economic interests," he told Nikkei, "hence regional divides will not serve China's interests."

Analysts fear the Islamabad-Riyadh spat will make Pakistan further reliant on Chinese loans. "With China, Pakistan has put all its eggs in one basket at this stage," Garlick said, adding that Pakistan has a difficult task ahead -- finding more allies.


 
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There is only 1

Chief Minister (5k+ posts)
تم عرب پر چڑھائی کرو گے اور خدا تمھیں فتح دے گا
طالبان پمفلٹ پر درج حدیث
. . . . . . .
ویسے پاکستان کا سعودیہ کو اتنا کہنا ہی کافی ہے کہ ہم سعودیہ کو فوجی پروٹیکشن نہیں دیں گے ، الله نہ کرے کہ ایسا ہو لیکن کفر یہی چاہتا ہےکہ سعودیہ دیگر مسلم ممالک سے لڑائی مول لے اور پھر وقت آنے پر یہی کافر لوگ تنہا اور اکیلے سعودیہ کا بینڈ بجا دیں
 

Vitamin_C

Chief Minister (5k+ posts)
Also Muhammad Bin Dollar is trying to blackmail Imran Khan, give us more trouble and we will ask you to pay back the rest of $6bn.

A nation of 200 million is hostage because of a measly $6bn.

Canada a country of 40 million has a federal budget of $300 billion.
 

Australian

Politcal Worker (100+ posts)
Now Army, Public and Government ..... All should understand the situation and help each other to start standing on their own feet. Pakistan is in very fragile situation. I am sure we will get through this in the leadership of Imran Khan if army don’t get in the middle of his plans and let him do freely what he wants. He is honest and in favour of Pakistan prosperity.

Lets get united.
Opposition should be ashamed of what they doing even in this hard time too.

InshaAllah, Pakistan will be a better Country in future.
 
Last edited:

shaheenzafar

MPA (400+ posts)
سعودیہ سمجھتا ہے بازور دولت سب کچھ کرسکتا ہے لیکن سنبھالے ان سے حوثی باغی نہیں جاتے امریکی پیٹریاٹ میزائل تک انکو ٹارگٹ نہی کرپاتے
 

Will_Bite

Chief Minister (5k+ posts)
Weakest link for Pakistan is the hundreds of thousands of expats who live and work in Saudi. Life could get difficult for them. Other than that, Kashmir should be taken up by OIC. Its about time.
 

Eagle-on-the-green

MPA (400+ posts)
Saudi Arabia will soon be a thing of the past..........very soon they will be driving camels again.......if they cannot stand with oppressed muslim communities, they are not with Umma then.........they are modern day slaves........
 
Saudis are scared of their own shadows. They are not the fighting kind. They have consumed all muslim resources. Time to brake these shackles. Pakistan MUST free Kashmir & find its voice.
 

islamabadi

Minister (2k+ posts)
PTI govenrment prides itself on having sent thousands more Cockroaches to Qatar last year after promising 10 million jobs in its election manifesto. Why dont u give 1 million jobs to the expats in Saudi arabia from the 10 million jobs you are supposed to create. Freaking moron....this government and this party is a curse upon us....
 

afghanbhaijan

Politcal Worker (100+ posts)
Saudi Arabia pulls support for Pakistan as Kashmir tiff widens

As Riyadh takes India's side, China comes through with $1bn for Islamabad



KARACHI -- Pakistan last week repaid a $1 billion Saudi loan that was called in after Pakistan began insisting that Saudi Arabia allow it to marshal the Islamic world's support on the Kashmir issue.

The $1 billion to repay the loan came from China in the form of another loan.

The original loan was a part of a $6.2 billion package announced by Saudi Arabia in November 2018, when Islamabad was struggling with a rapidly expanding trade deficit and declining foreign reserves. The package included $3 billion in loans and a $3.2 billion oil credit facility. Saudi Arabia at the time was something of a white knight, providing much-needed cash before the International Monetary Fund approved a $6 billion bailout in July 2019.


According to Pakistani media, the oil credit facility was suspended in May, with the Saudis later asking Pakistan to also repay the loan in full.

The countries' relations deteriorated quickly, beginning in February when Saudi Arabia turned down a request by Pakistan to convene a special meeting of the Council of Foreign Ministers of the Organization of Islamic Cooperation. Islamabad did not back down, demanding to use the OIC to pressure India on the Kashmir issue. It was then that Saudi Arabia decided to call in the loan.



The OIC is a group of 57 Muslim countries that is largely guided by Saudi Arabia.

India and Pakistan have been disputing claims over Kashmir since gaining their independence from Britain in 1947. Each of the neighbors controls parts of Kashmir, but they also have overlapping claims.

Since 1963, China has controlled the Aksai region of Kashmir. Lately, China has adopted an aggressive posture toward Kashmir that favors Pakistan. This has resulted in a number of border clashes, including ones with India that erupted May and June.

Shah Mahmood Qureshi, Pakistan's foreign minister, has continued openly demanding that Saudi Arabia convene an OIC council meeting.

Last week in a TV interview, he said, "Today, I am telling the OIC to convene the meeting of the council of foreign ministers. If they cannot do it, then I will be compelled to ask the prime minister [Imran Khan] to call a meeting of Islamic countries [Iran, Turkey and Malaysia] that are ready to stand with us on the issue of Kashmir."

The latest developments have also cast doubt on the future of memorandums of understanding that call on Saudi Arabia to invest $20 billion in Pakistan; they were signed during Saudi Crown Prince Muhammad bin Salman's visit to Pakistan in February 2019.

The proposed investments include $10 billion in an oil refinery in Gwadar, a port city that because of its strategic location at the mouth of the Gulf of Oman has made it a focal point of the $50 billion China-Pakistan Economic Corridor, itself a big part of China's much wider Belt and Road Initiative.

Experts believe Saudi Arabia is reluctant to become entangled in the efforts of Pakistan and China to contain India.

"Saudi Arabia is closely allied with the U.S., which may also be [applying behind-the-scenes pressure on] Saudi Arabia to stay away from Chinese initiatives," said Jeremy Garlick, an assistant professor with the Jan Masaryk Center for International Studies at the University of Economics in Prague.

Garlick is also the author of "The Impact of China's Belt and Road Initiative: From Asia to Europe."

"It is probably less risky for Saudi Arabia to withdraw its support for Pakistan than to stay in Gwadar," Garlick told the Nikkei Asian Review, "since Pakistan is so closely allied to China and both are forming a wedge against India."

James M. Dorsey, a senior fellow at the S. Rajaratnam School of International Studies at Singapore, believes close economic ties between the Saudis and India are driving the kingdom's change of heart toward Pakistan.

"Saudi Arabia has significant investments in India, which is also a major buyer of oil from the kingdom. Consequently, Riyadh has been less forthcoming to extend support to Pakistan's stance on Kashmir," Dorsey told Nikkei.




Other experts say the Saudis are on a diplomatic high wire and are sure to try to find a balance. "Saudi Arabia also needs Pakistan due to its proximity with Iran and being home to world's largest Shiite minority," Dorsey said. He added that the Saudis will try to do something on the issue of Kashmir to placate Pakistan but not go so far as to provoke India.

Experts believe the Saudis are not alone in exercising caution, that Beijing is also wary. "China needs Saudi oil," Garlick said, adding that it will "play a waiting game at this stage and try not to become involved in Middle Eastern politics for as long as possible."

Einar Tangen, an author and economic affairs commentator based in Beijing, maintains that China's approach to the Islamabad-Riyadh tiff is more practical than ideological. "China needs multiple land and sea routes to protect its economic interests," he told Nikkei, "hence regional divides will not serve China's interests."

Analysts fear the Islamabad-Riyadh spat will make Pakistan further reliant on Chinese loans. "With China, Pakistan has put all its eggs in one basket at this stage," Garlick said, adding that Pakistan has a difficult task ahead -- finding more allies.


saudi shahzada salman knows punjabis are eating his money as free langar , he can not be fooled .
 
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