The recent financial operations connected to reverse debts with China, Saudi Arabia (KSA), and the United Arab Emirates (UAE) alongside the Fitch Ratings upgrade of Pakistan’s credit rating to ‘CCC ’, suggest that South Asia is at a new turning point. These development explain the complexity in international finance, layers of power relations involving Middle Eastern nations as well as the perpetual problems that Pakistan is experiencing in its endeavor to reconstruct its economy.
It was revealed in early August 2024 that China, KSA, and the UAE extend $12 bn dept to Pakistan for an additional year by rollover. This move the ongoing bailout talks Pakistan holding with the IMF for the financial help of seven billion dollar for revamping the country’s economy. This rollover of this huge debt is not just a balancing of books; it is part of the geopolitical calculus of these countries to keep their foot in Pakistan and manage a region that is of strategic economic value to them.
The rollover agreement is quite crucial because it takes the pressure off the Pakistan government in terms of shorter-term Financial concerns so that it can opt for the critical social adjustment. The latest rollover, like the previous ones, became a necessity to obtain the........