ISLAMABAD – Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh Wednesday said Saudi Arabia is going to extend a $3.2 billion deferred payment facility to Pakistan for petroleum products, scheduled to begin from the start of July.
“The facility will be worth $275 million per month and will amount to $3.2b per year for a period of three years,” Shaikh wrote in a series of tweets while thanking the Crown Prince of Saudi Arabia, Mohammad Bin Salman, for his continuous support for the people of Pakistan.
He said the facility would help strengthen Pakistan’s balance of payments position as the country battles a current account crisis.
1/. Would like to Thank The Crown Prince of Saudi Arabia, His Highness Muhammad Bin Salman for his continuous support for the people of Pakistan.
— Dr. Abdul Hafeez Shaikh (@ahshaikhfinance) May 22, 2019
2./ From 1st July 2019 KSA is activating the deferred payment for petroleum products facility of US$ 275mn per month amounting to US$3.2 Billion per year for 3 years. This will strengthen Pakistan’s Balance of Payments position.
— Dr. Abdul Hafeez Shaikh (@ahshaikhfinance) May 22, 2019
“This will strengthen Pakistan’s Balance of Payments position,” one of his tweets read.
Both the countries had in February this year signed agreement to make oil facility on deferred payment up to $3 billion operational, according to which Islamabad will get breathing space of $250 million on account of import of oil on monthly basis.
