Saudi Arabia defers $1.2 billion oil payment for Pakistan

Saudi Arabia Defers $1.2 Billion Oil Payment for Pakistan

Saudi Arabia has agreed to defer a $1.2 billion payment for Pakistan’s oil imports by one year, the Saudi Fund for Development (SFD) announced on Monday.

The arrangement is expected to help Pakistan boost its foreign reserves ahead of a crucial review of its $7 billion IMF bailout, due in March.

The agreement comes as Pakistan continues to face challenges in its economic recovery and meets tough conditions set by the IMF.

The deal was signed in the presence of Pakistan’s Prime Minister Shehbaz Sharif, with Sultan Al-Marshad, CEO of the SFD, representing Saudi Arabia, and Dr. Kazim Niaz, Secretary of Pakistan’s Ministry of Economic Affairs.

The SFD highlighted that the agreement would help Pakistan secure a stable supply of petroleum products while easing its immediate fiscal pressures.

In addition to the oil payment deferral, Pakistan and the SFD also finalized a $41 million loan for the Gravity Flow Water Supply Scheme in Mansehra, Khyber Pakhtunkhwa, aimed at providing clean drinking water to at least 150,000 people.

Furthermore, the SFD proposed collaboration with the Pakistan government to provide training programs for young Pakistanis to meet the growing demand for skilled labor in Saudi Arabia, where nearly 2.64 million Pakistanis work as part of the Kingdom's Vision 2030 economic modernization plan.