Pakistan has formally asked for a $1 billion oil facility from the Kingdom of Saudi Arabia (KSA) on a deferred payment basis for the calendar year 2024.

The cash-strapped nation is seeking the facility from January 2024 onward. Saudi Arabia has yet to convey its approval but it is expected that related processes, attached costs, and other terms and conditions will be hashed out in the coming months, reported a national daily.

Notably, the Saudi oil facility has been included in the IMF’s $3 billion Standby Arrangement (SBA) program for Pakistan’s oil economy until March 2024.

The current facility will conclude in December 2023. During the quarter that ended on September 30, Pakistan received $300 million. The Kingdom has disbursed $700 million since March, while another $300 million is expected to be transferred by end-December 2023.

It bears mentioning that the financing agreement worth $1.2 billion for the import of petroleum products was first signed in November 2021 between the Saudi Fund for Development (SFD) and Pakistan’s Economic Affairs Division (EAD).

Source: Pro Pakistani