ISLAMABAD (Lord Media): Pakistan has requested a 6.7 billion U.S. dollars concessional oil financing package from Saudi Arabia to mitigate the impact of rising oil prices in the global market and ensure energy security.
The spokesperson for the Ministry of Economic Affairs confirmed that the deferred oil payment facility is under consideration between the two countries. Pakistan has proposed a 15-year term with a 1% interest rate for the oil financing.
Pakistan has suggested a five-year grace period before repayment and a total repayment period of 15 years. According to the Ministry of Economic Affairs, discussions between the two governments are ongoing.
Saudi Arabia has been supplying Pakistan with oil on deferred payments since 2019. The last agreement was signed in February 2025, expiring in April 2025.
A 1.2 billion U.S. dollars oil import financing agreement has also been signed between the Saudi Fund for Development and the Ministry of Economic Affairs, with an interest rate of 6%.
Since 2019, the Saudi Fund for Development has provided 6.7 billion U.S. dollars in financial assistance for oil imports to Pakistan. Pakistan is exploring various options to repay its external debts due in the coming years.
According to the State Bank, Pakistan imported petroleum products worth 14 billion U.S. dollars during the last fiscal year. After China, Saudi Arabia is Pakistan’s major bilateral financial supporter.
Federal Finance Minister Muhammad Aurangzeb and Federal Energy Minister Sardar Owais Leghari agreed to enhance bilateral economic cooperation in a meeting with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan.
