Saudi Arabia has stopped the oil supply and ended the loan to Pakistan due to the Pakistani govt’s criticism on Saudi-led Organisation of Islamic Cooperation (OIC). Pakistan has blamed Saudi Arabia and Organisation of Islamic Cooperation (OIC) that They are not doing enough to pressure India on the Kashmir issue.
Last week, Pakistan was forced to repay a Saudi loan of $1 billion. Pakistani government paid back $1 billion loan of Saudi Arabia by taking the the loan of $1 billion from China.
Pakistani government had taken $3 billion loan from Saudi Arabia to avoid default on international debt obligations one and a half year ago. In October 2018, Saudi Arabia had agreed to provide the financial package of $6.2 billion to Pakistan for three years. This included $3 billion in cash assistance and $3.2 billion worth of annual oil and gas supply.
Realtion between Pakistan and Saudi Arabia is breaking down due to the Kashmir issue. Pakistan wanted Saudi Arabia to use its role to interfere in Kashmir issue but Saudi Arabia turned down Pakistan’s request to interfere in Kashmir issue.
Pakistan has threatened to call a separate meeting of Islamic nations willing to discuss the Kashmir issue if the Organisation of Islamic Conference (OIC) fails to do so soon.
Pakistani foreign minister, Shah Mehmood Qureshi, told reporters, “I am once again respectfully telling OIC that a meeting of the Council of Foreign Ministers is our expectation. If you cannot convene it, then I’ll be compelled to ask Prime Minister Imran Khan to call a meeting of the Islamic countries that are ready to stand with us on the issue of Kashmir and support the oppressed Kashmiris.”