Islamabad, Feb 4 (PTI) – In a significant financial relief, the Pakistan government has signed an agreement with the Saudi Fund for Development (SFD) to defer a USD 1.2 billion payment on oil imports for one year.
According to Radio Pakistan, the agreement was formalized on Monday, alongside another financing deal aimed at infrastructure development. The two agreements include the deferred oil payment facility worth USD 1.2 billion and a USD 41 million project for the "Construction of Gravity Flow Water Supply Scheme" in Mansehra.
The agreements were signed by Secretary of Economic Affairs Dr. Kazim Niaz and Chief Executive Officer of the Saudi Fund for Development Sultan Abdulrahman Al-Marshad. The signing ceremony was attended by Prime Minister Shehbaz Sharif and Saudi Ambassador Nawaf bin Said Al-Malki.
Prime Minister Shehbaz Sharif hailed the deferred oil payment agreement, stating that it would provide crucial economic stability by ensuring a steady petroleum supply while easing Pakistan’s fiscal burden. "This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal pressures," the Prime Minister’s Office (PMO) said in a statement.
Saudi Arabia is a key oil supplier to Pakistan, with petroleum imports forming a significant portion of the country’s import bill. The deferred payment facility comes at a crucial time, as Islamabad seeks to bolster its foreign exchange reserves ahead of the first review of its USD 7 billion program with the International Monetary Fund (IMF) in March.
Beyond financial cooperation, Pakistan and Saudi Arabia share strong economic ties, with approximately 2.64 million Pakistanis working in the Kingdom as of 2023. While 97% of them are employed in blue-collar jobs, the demand for skilled labor is rising as Saudi Arabia pushes forward with its Vision 2030 modernization initiative.
This agreement underscores the growing economic partnership between the two nations and provides Pakistan with much-needed financial breathing space.
According to Radio Pakistan, the agreement was formalized on Monday, alongside another financing deal aimed at infrastructure development. The two agreements include the deferred oil payment facility worth USD 1.2 billion and a USD 41 million project for the "Construction of Gravity Flow Water Supply Scheme" in Mansehra.
The agreements were signed by Secretary of Economic Affairs Dr. Kazim Niaz and Chief Executive Officer of the Saudi Fund for Development Sultan Abdulrahman Al-Marshad. The signing ceremony was attended by Prime Minister Shehbaz Sharif and Saudi Ambassador Nawaf bin Said Al-Malki.
Prime Minister Shehbaz Sharif hailed the deferred oil payment agreement, stating that it would provide crucial economic stability by ensuring a steady petroleum supply while easing Pakistan’s fiscal burden. "This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal pressures," the Prime Minister’s Office (PMO) said in a statement.
Saudi Arabia is a key oil supplier to Pakistan, with petroleum imports forming a significant portion of the country’s import bill. The deferred payment facility comes at a crucial time, as Islamabad seeks to bolster its foreign exchange reserves ahead of the first review of its USD 7 billion program with the International Monetary Fund (IMF) in March.
Beyond financial cooperation, Pakistan and Saudi Arabia share strong economic ties, with approximately 2.64 million Pakistanis working in the Kingdom as of 2023. While 97% of them are employed in blue-collar jobs, the demand for skilled labor is rising as Saudi Arabia pushes forward with its Vision 2030 modernization initiative.
This agreement underscores the growing economic partnership between the two nations and provides Pakistan with much-needed financial breathing space.
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