It is a well-known matter that Pakistan’s economy is in an extremely bad situation. Going by the World Bank estimate in between the COVID pandemic, Pakistan’s real GDP growth is estimated to have declined further from 1.9 per cent in FY19 to -1.5 per cent in FY20.
The main officials of the Pakistan government are in deep trouble after the United Arab Emirates (UAE) has ordered Pakistan to give it’s USD 1 billion back. The USD 1 billion was deposited earlier with the State Bank of Pakistan (SBP). SBP is the central bank of the country. The closing date for Pakistan to return the USD 1 billion is 12 March (Friday). The UAE governmet has demanded the money back as the amount has reached its maturity.
The Pakistan Muslim League-Nawaz’s (PML-N) high fiscal and balance of payments deficits has always been attributed as a major reason for the plunge in economic decline.It’s difficult for any subsequent government that came back into power after the elections. Ten months after the election took place. the PTI government was again knocking at the IMF’s door for what was Pakistan’s 13th loan program since the 1980s. The 39-month US$6 billion Extended Fund Facility was stopped with the onset of COVID-19 pandemic in March 2020.
A lot of attempts have been made by Pakistan to reach out to UAE.Pakistani officials even tried to request to the Crown Prince of UAE. But there hasn’t been any response till now. Pakistan has meanwhile pleaded to the UAE that returning such a huge amount can adversely impact its suffering economic situation even further.