Saudi oil on deferred payment from July

Credit facility to strengthen balance of payments position: Hafeez




Adviser to Prime Minister on Finance Abdul Hafeez Sheikh on Wednesday said that from July 1, Kingdom of Saudi Arabia (KSA) is activating the deferred payment for petroleum products facility of $ 275mn per month amounting to $3.2 Billion per year for 3 years.

In his tweet, the finance adviser thankedtheCrownPrinceofSaudi Arabia, His Highness Muhammad BinSalmanforhiscontinuoussupport for the people of Pakistan. Sheikh further wrote that activating the deferred payment for petroleum products facility by Saudi Arabia will strengthen Pakistan s Balance of Payments position.

In October last year, Saudi Arabia had agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis. The Saudi agreement came after Prime Minister Imran Khan attended a Saudi investment conference that has been boycotted by several other leaders over the deathofa dissidentSaudiwriterat the country’s consulate inIstanbul.

According to the agreement, the Saudi Aramco will supply around 110,000 barrels per day crude oil to Pakistan’s state run Pak Arab Refinery and National Refinery for refining. Pakistan’s petroleum groupimports includingcrude and LiquefiedNatural GasLNGstoodat $13.26 billion during the last fiscal year FY 18 while the country has imported $6.8 billion worth of petroleum product during the first5monthsofcurrent fiscal year FY 19

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