Saudi Arabia increases oil supply to Pakistan on deferred payment

ISLAMABAD: Saudi Arabia has enhanced its financial support to Pakistan by increasing the oil supply facility on deferred payments, according to an official document.
The document reveals that the oil facility extended by Saudi Arabia has reached $800 million during the first eight months of the current fiscal year, from July 2025 to February 2026.
This marks a significant boost in energy-related financial assistance aimed at easing Pakistan’s external payment burden.
In February 2026 alone, Pakistan received an additional $100 million under this facility, continuing the steady monthly support provided by the Kingdom. The arrangement ensures a consistent inflow of oil on deferred payments, helping Pakistan manage its foreign exchange reserves more effectively.
According to details, Saudi Arabia is providing $100 million per month in oil facility to Pakistan, reflecting a structured and sustained commitment throughout the fiscal year.
Officials estimate that the total oil facility from Saudi Arabia will reach $1 billion by the end of the current fiscal year, further strengthening bilateral economic cooperation between the two countries.
Economic analysts say the deferred oil payment mechanism plays a crucial role in reducing immediate financial pressure on Pakistan, particularly amid ongoing efforts to stabilise the economy and meet external financing needs.
The continued support from Saudi Arabia underscores strong diplomatic and economic ties, as Pakistan seeks to maintain energy security while managing its balance of payments challenges. -NNI