Saudi Arabia turns on oil tap for Pakistan over deffered payment

06:42 PM | 1 Oct, 2021
Saudi Arabia turns on oil tap for Pakistan over deffered payment
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JHELUM – Federal Minister for Finance Shaukat Tarin revealed on Friday that Saudi Arabia has agreed to provide oil on deferred payment to Pakistan.

His statement comes amid roar over latest surge in petroleum prices in Pakistan. The federal government, a day earlier, announced to raise the prices by up to Rs8.82 per litre.

Addressing the ceremony, the finance minister said that the kingdom would provide $150 million to Pakistan on a monthly basis, and in two years, Riyadh would give a facility of $3.60 billion to Islamabad.

He said that the amount will be used to buy oil.

Back in May this year, Federal Information Minister Fawad Chaudhry had predicted that Pakistan will receive oil on deferred payments from Saudi Arabia in the near future.

The ruling party member while speaking about the development said that Prime Minister Imran Khan, during his recent visit to the kingdom, had made a request to Saudi authorities to resume the supply of oil to Pakistan on deferred payments for an extended period.

He further added that the exact details of the accord will be known later when there is a formal agreement between the two sides. ‘it's almost done’, he added.

Earlier, the Kingdom had powered Pakistan with a $6 billion financial package, including $3 billion deposits into the State Bank of Pakistan, and the remaining $3 billion for oil facility on deferred payment on an annual basis.

The previous oil facility from Kingdom was signed for three years during the Saudi Crown Prince Mohammad Bin Salman’s visit to Pakistan. This whole facility would be ended in the fourth year upon the maturity of getting oil for the third year.

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