Saudi Arabia has renewed a $1 billion oil supply facility for Pakistan on deferred payment for another year under the Saudi Development Fund, while also rolling over $5 billion in deposits, the finance ministry said on Monday.
According to the ministry, the Saudi oil financing facility, equivalent to around Rs290 billion, will support Pakistan’s energy imports.
The $5 billion deposits held by Saudi Arabia in Pakistan’s central bank will also be rolled over, with $2 billion maturing in December and the remaining $3 billion due in June 2026.
Documents show that during the first three months of the current fiscal year, Pakistan received oil supplies worth over Rs85 billion under the Saudi facility, equivalent to $300 million. Saudi Arabia has been providing oil support of about $100 million per month, translating to Rs28.37 billion monthly in Pakistani currency.
Finance Ministry officials stated that Saudi Arabia’s $5 billion in time deposits carry an annual interest rate of 4%.
The kingdom has been rolling over these funds each year. The deposits, valued at roughly Rs1.45 trillion, were extended as budgetary support to help Pakistan stabilize its external financing position and strengthen foreign exchange reserves.
