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Pakistan seeks increase in Saudi oil facility to $3.6 billion

Saudi Arabia is also helping Pakistan utilise another existing oil financing facility with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) group.

ISLAMABAD: Pakistan government has requested Saudi Arabia to enhance the oil facility on delayed payment to $3.6 billion from the existing $1.2 billion.

The Kingdom of Saudi Arabia agreed to provide Pakistan with a $4.2 billion support package, including a $1.2 billion oil facility on deferred payment in October 2021, when former prime minister Imran Khan visited Riyadh.

“We are seeking increase in existing Saudi facility to $3.6 billion from $1.2 billion,” Syed Zakria Ali Shah, joint secretary of international and joint ventures at the Pakistani petroleum division, told Arab media.

At present, Pakistan is getting $100 million worth of oil on deferred payment every month from Saudi Arabia.

“When it was negotiated, the oil prices were low but due to exponential rise in prices, we are negotiating with Saudi Arabia to enhance the oil facility from $100 million to $300 million per month.”

He said Saudi Arabia is also helping Pakistan utilise another existing oil financing facility with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) group.

“The government of Pakistan has this facility for oil and liquefied natural gas (LNG) imports under the framework agreement with ITFC since 2017-18 and the last framework agreement was signed for this facility between the our economic affairs division and ITFC on February 21, 2022,” Shah said.

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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