Categories: Business

USD 3.2 bn oil deal between Pak, Saudi expires; Islamabad urges renewal Pakistan's $ 3.2 billion deal with Saudi Arabia ends, oil not available since May

Photo: NEWS18

USD 3.2 bn oil deal between Pak, Saudi expires; Islamabad urges renewal

Islamabad Pakistan has not received crude oil on loan from Saudi Arabia since May and has not yet received any response from the supplier to continue the facility. According to the report, the term of the $ 3.2 billion agreement between the two sides has already expired two months ago. Pakistan has urged Saudi Arabia to expand the system, but has not received a response yet.

As per the report published on Friday in The Express Tribune, Saudi Arabia announced a $ 6.2 billion package to address Pakistan's external sector concerns in November 2018. The $ 3.2 billion crude oil facility from Saudi Arabia is part of this package. Petroleum Department spokesman Sajid Kazi said the deal expired in May. The finance department is trying to renew it.

He said that Pakistan is awaiting reply from the Saudi Arabian government. According to the budget estimates, the government expects to get a minimum of one billion dollars of crude oil in the financial year 2020-21. Pakistan's fiscal year begins in July. The report says that Pakistan has repaid Saudi Arabia's loan of one billion dollars four months ahead of time. Sources have been quoted as saying that if Pakistan gets a similar facility from China, it will also be in a position to repay a two billion dollar cash loan.

There is a provision of two years of renewal in Saudi Arabia's three billion dollar cash support and $ 3.2 billion crude oil facility annually.

This post was published on August 8, 2020 7:00 pm

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