Pakistan seeks $1.2bn oil facility from Saudi Arabia to ease economic strains

Pakistan is seeking financial assistance from Saudi Arabia and other international lenders to address a $2-2.5 billion financing gap identified by the International Monetary Fund (IMF) for the current fiscal year.

According to official sources, Pakistan has requested a $1.2 billion Saudi Oil Facility (SOF) for the next 12 months, as well as a $400-500 million Islamic Development Bank’s ITFC facility. Additionally, Pakistan has approached Gulf commercial banks and the Standard Chartered Bank for a $1 billion loan.

The country is also seeking to roll over $12 billion deposits held by three bilateral creditors at the State Bank of Pakistan. Furthermore, Pakistan requires commercial refinancing of $4 billion during the current fiscal year to meet its total requirements of $26.2 billion.

In a meeting with Saudi Ambassador Nawaf Bin Said Al-Malki, Federal Minister for Finance and Revenue Muhammad Aurangzeb reaffirmed Pakistan’s commitment to a home-grown economic agenda centred on comprehensive institutional reforms. The minister expressed appreciation for Saudi Arabia’s consistent economic support and highlighted the renewed interest of Saudi investors in pursuing joint ventures and business collaborations with Pakistan’s private sector.

Ambassador Al-Malki commended the Pakistani government’s efforts in implementing structural and institutional reforms and reiterated Saudi Arabia’s commitment to contributing to Pakistan’s economic growth.

Web Desk Karachi