Pakistan will start receiving oil supplies from Saudi Arabia on deferred payments this month. According to a press release issued by Saudi embassy in Islamabad on Monday, Pakistan will start receiving monthly oil supplies worth 275 million dollars.
These supplies will continue over the next three years with a total value of 9.9 billion dollars. It may be added that in last October Saudi Arabia had announced an economic support package for Pakistan which included three billion dollars for supporting balance of external payments.
The two countries inked a financing agreement for the import of petroleum products, crude oil and LNG on February 17 during the Saudi crown prince’s Islamabad visit earlier this year.
Last year, Riyadh had agreed to provide a bailout package of $6bn to help resuscitate Pakistan’s worsening economy. According to the agreement, $3bn were to be provided in foreign currency to address Pakistan’s balance of payments crisis. A deferred payment facility for the import of oil worth up to another $3 billion was also part of the package.
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