Saudi Arabia to provide oil credit facility to Pakistan


ISLAMABAD: Saudi Arabia has agreed to extend helping hand to Pakistan in difficult economic situation.
According to a private television channel report Wednesday, after high level official contacts the kingdom will likely to provide oil, worth up to $3 billion on credit to Pakistan.
Prime Minister Imran Khan has been informed about the development over the matter, sources said.
Riyadh will provide Islamabad deferred payment facility for import of oil, worth up to $3 billion.
An agreement in this regard was signed 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.
This arrangement will be in place for three years, after which it will be reviewed. 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 dollar, sources said. The recent hike in oil prices import bill of Pakistan has increased to extra-ordinary 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.
The two countries have already agreed over the payment mechanism of the oil credit facility, sources added. – NNI