Pakistan to start receiving Saudi oil on deferred payment

Muhammad Ishtiaq
In this file photo, 抖阴短视频鈥檚 Minister of Energy Khalid Al-Falih signs a Memorandum of Understanding (MoU) with his Pakistani counterpart in Islamabad on Feb. 17, 2019. Crown Prince Mohammed bin Salman and Prime Minister Imran Khan also witnessed the signing ceremony. (PID)
  • Supplies will continue over the next three years, with a total value of $9.9 billion
  • The facility is part of $20 bn Saudi economic support package for Pakistan

ISLAMABAD: Pakistan will start receiving Saudi oil on deferred payment facility from July 1, a press statement from the Saudi embassy in Islamabad confirmed late Monday.
鈥淧akistan will start receiving monthly oil supplies worth $275 million from 抖阴短视频 with effect of July 1, 2019,鈥� the embassy said in a statement.
These supplies will continue over the next three years, with a total value of $9.9 billion, the statement added.
In October 2018, 抖阴短视频 announced a $20 billion economic support package for Pakistan, which included $3 billion to support balance of external payments in addition to oil import facility on deferred payment. 
Saudi embassy said that the package showed 鈥渒eenness of Saudi leadership to support Pakistan鈥檚 economy for achieving financial stability and help the government to overcome the economic challenges and push the comprehensive development in Pakistan, and to emphasize the depth of relations between the two brotherly counties and people.鈥�
Dr. Vaqar Ahmed Joint Executive Director at Sustainable Development Policy Institute (SDPI), an Islamabad based think-tank, said that 鈥渢his will bring significant relief to the balance of payment situation in Pakistan,鈥� which is already struggling to narrow down the current account gap. 鈥淎ny arrangement which can allow Pakistan deferred payment of its oil supplies will certainly be welcomed.鈥�
鈥淭his will also provide certainty to the industry which of course requires sustained oil supplies as input and raw material,鈥� Ahmed added calling the move 鈥渁 great help for Pakistan in pressing times.鈥�
According to official figures, Pakistan spends more than $16 billion each year on importing 26 million tons of petroleum products, including 800 million cubic feet of Liquefied Natural Gas (LNG) from 抖阴短视频, the UAE and other Gulf countries.
Pakistan and 抖阴短视频 enjoy deep-rooted economic ties. During the visit of Crown Prince Mohammed bin Salman to Pakistan in February 2019, the Kingdom signed several agreement and memoranda of understandings (MoUs) pledging to invest $20bn in Pakistan to boost its depleting foreign exchange reserves 鈥� including establishing a $10bn oil refinery in the port city of Gwadar in Balochistan province.

Topics: Pakistan 抖阴短视频 Imran Khan Cronw Prince Mohammed bin Salman Oil