Brother, I've heard both that they called in the loan and that we returned it ourselves, not sure at this point which is the case. Given some time, I'll learn what the actual story was soon enough. Apologies if this is not of use to anyone at this time. It came much to the surprise of analysts and even the folks at the IMF.
But I think it's important to note that it is we who were not satisfied with the status quo and decided to shake things up a bit. This might be indicative of some rethinking and signalling in policy. In 2018, the Saudis gave us these deposits when were in dire need, financially they had nothing to gain, it was our need. And any talk about getting better deals or refinancing is incorrect. This was likely a political decision by us, but it's also possible that they may have requested. In 2018, IK went straight to Riyadh after becoming PM, there we arranged Saudi financial assistance. Since then, we have asked the Saudis to assist in talking with Trump, I believe IK even took MBS' private jet to NY, as well as arranging talks with Trump and direct contact through Jared Kushner. Saudis not too long ago also offered USD20bn in investments including oil refineries.
Since then relations have soured, our leadership unilaterally took on the mantle of bridging Iran-Saudi relations. I know IK meant well in this, but it wasn't well received in Riyadh. Most notably our closeness to Turkey and Malaysia, and the whole Kuala Lumpur conference debacle was another major indicator. And since then it's clear that our government has become very frustrated with the OIC (and by extension with the Saudi government). Their refusal to side with us on Kashmir doesn't bode well for our effort to raise int'l awareness of this cause.
So I think this statement from SMQ was calculated and likely backed by our PM. The return of Saudi deposits, are a little unclearer. But neither did SMQ slip up, and neither did we return the funds because we had better options, we don't plainly. One thing I can say categorically is that there is no financial benefit, or restructuring. Saudis used their deposits to prop up ours forex reserves when it looked like we were on the brink of sinking. It wasn't out of their financial interests, but ours. In order to make up the 1bn difference in reserves, whatever funds we get will have to be sovereign debt as per IMF conditions as opposed to SBP reserves that Saudis gave us.
This latest outburst/comments by SMQ I do not believe were off the cuff. Certainly at the very least some signalling comes from further up. Whatever else he is, he is a smart man, and FO neither redacted the claim nor even refused to comment, they said something else entirely.
Also, I briefly gave my humble thoughts on SMQ's earlier statements: