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Saudi Arabia to activate $3.2b deferred payment facility for oil from July

Saudi Arabia to activate $3.2b deferred payment facility for oil from July

ISLAMABAD: The Kingdom of Saudi Arabia (KSA) will extend a $3.2 billion deferred payment facility with Pakistan for petroleum products from the start of July, the PM’s Adviser on Finance Dr Abdul Hafeez Shaikh said on Wednesday.

The facility will be worth $275 million per month and will amount to $3.2bn per year for a period of three years, the finance adviser said.

In a message posted on social media website Twitter, Dr Hafeez Shaikh thank the Crown Prince of Saudi Arabia for his continuous support for the people of Pakistan.

He said the facility would help strengthen Pakistan’s balance of payments position as the country battles a current account crisis.

Minister of State for Revenue Hammad Azhar welcomed the good news and said that it would greatly help Pakistan’s foreign exchange reserves as well.

From 1st July 2019 KSA is activating the deferred payment for petroleum products facility of US$ 275mn per month amounting to US$3.2 Billion per year for 3 years. This will strengthen Pakistan’s Balance of Payments position.