Pakistan secures $1.2B deferral on Saudi oil payments

ISLAMABAD

Pakistan and Saudi Arabia have signed an agreement to defer a $1.2 billion payment on oil imports by one year, according to an official statement.

The deal was signed on Monday at the Prime Minister's Office in Islamabad by Pakistan’s secretary of economic affairs, Kazim Niaz, and Saudi Fund for Development chief executive officer, Sultan Abdulrahman Al-Marshad.

Prime Minister Shehbaz Sharif and Saudi Ambassador Nawaf bin Said Al-Malki witnessed the signing ceremony, according to a statement from the premier's office.

"The prime minister welcomed the signing of Oil Import Financing Facility, according to which Pakistan will receive oil on deferred payment for one year totaling $1.2 billion. This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal burdens," the statement said.

The Saudi Fund for Development will also provide $41 million for the Gravity Flow Water Supply Scheme in Mansehra district, Khyber Pakhtunkhwa province, a project expected to improve access to clean drinking water for 150,000 people.

Sharif, who also met with the Saudi delegation, praised the long-standing bilateral relations, and the fund's support in financing Pakistan’s health, energy, infrastructure, and education sectors, as well as the reconstruction efforts following the 2022 floods, according to the statement.

ISLAMABAD

Pakistan and Saudi Arabia have signed an agreement to defer a $1.2 billion payment on oil imports by one year, according to an official statement.

Prime Minister Shehbaz Sharif and Saudi Ambassador Nawaf bin Said Al-Malki witnessed the signing ceremony, according to a statement from the premier's office.