Saudi Arabia to start $3.2bn deferred payment facility for oil from July


Saudi Arabia will extend a $3.2 billion deferred payment facility with Pakistan for petroleum products from the start of July, PM’s Adviser on Finance Dr Abdul Hafeez Shaikh said on Wednesday.

The facility will be worth $275 million per month and will amount to $3.2bn per year for a period of three years, the finance adviser said.

In a message posted on social media website Twitter, Shaikh thanked the Crown Prince of Saudi Arabia for his continuous support for the people of Pakistan.

He said the facility would help strengthen Pakistan’s balance of payments position as the country battles a current account crisis.

Retweeting the finance adviser’s post, Minister of State for Revenue Hammad Azhar welcomed the good news and said that it would greatly help Pakistan’s foreign exchange reserves as well.