Saudi Arabia begins oil supply on deferred payments to Pakistan
ISLAMABAD: Saudi Arabia will begin supplying oil to Pakistan on deferred payments from this month, ARY News reported on Monday.
Pakistan will start receiving monthly oil supplies worth 275 million dollars from today (Monday), said a press release issued by the Saudi embassy in Islamabad
These supplies will continue over the next three years with a total value of 9.9 billion dollars, the press release added.
It may be added that in last October Saudi Arabia had announced an economic support package for Pakistan which included three billion dollars for supporting a balance of external payments.
It must be noted that Riyadh announced to provide Islamabad deferred payment facility for import of oil, worth up to $3 billion during the visit of Prime Minister Imran Khan to Saudi Arabia to attend the Future Investment Initiative (FII) conference, a trip he undertook on the invitation of King Salman bin Abdul Aziz Al-Saud.
The loan worth up to $3 billion in deferred payments for oil imports will help stave off an economic crisis.
The oil on credit will help stabilize Pakistani currency in exchange rate with the dollar, sources said.
The recent hike in oil prices import bill of Pakistan has increased to extraordinary proportions.
Pakistan is an oil importing country and meets its energy needs with imported oil. The country has imported oil worth 10 billion dollars in the ongoing financial year so far, sources said.