Saudi Arabia ends a loan and associated oil supply to Pakistan following threats to split OIC

Saudi Arabia has ended a loan and associated oil supply to Pakistan due to Islamabad’s criticism that Riyadh-dominated Organisation of Islamic Cooperation (OIC) is not doing enough on the Kashmir issue, signalling further deterioration in relations between the two allies. Pakistan Foreign Minister had even threatened to split OIC if the group fails to convene a stand-alone session on Kashmir.
Pakistan had to repay a Saudi loan of $1 billion after Pakistan persisted that it should lead OIC on the Kashmir issue. The loan was part of a $6.2 billion package announced by Saudi Arabia in November 2018, which included a total of $3 billion in loans and an oil credit facility amounting to $3.2 billion. Those deals were then signed when Crown Prince Muhammed Bin Salman made a visit to Pakistan in February last year.
But Saudi Arabia focussing on further expanding partnership with India has not shown any willingness to convene a stand-alone meet on Kashmir.
Last week Pakistan’s foreign minister, Shah Mehmood Qureshi, asked the OIC to stop dilly-dallying on convening a meeting of the group’s Council of Foreign Ministers on Kashmir.
Qureshi had told local media: “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.”
In response to a reporter’s query, Qureshi also said that Pakistan could not wait any further and threatened that if the OIC fails to summon the CFM meeting, Pakistan would be ready to go for a session outside OIC.