Pakistan has approached Saudi Arabia for a $6.7 billion long-term concessional oil financing facility as the country seeks to secure energy supplies and shield its foreign exchange reserves from rising pressure amid ongoing Middle East tensions.
The proposed facility, which includes deferred payments and favorable repayment terms, is currently under discussion between the two governments, Express Tribune reported on Thursday.
Pakistan seeks concessional oil financing facility for a period of 15 years to strengthen energy security amid concerns over rising global oil prices.
A spokesperson for the Ministry of Economic Affairs confirmed that discussions regarding the Saudi oil facility on deferred payments are underway between the two governments.
Report said Pakistan is seeking the facility at an interest rate of 1%, with a five-year grace period and repayment spread over the remaining 10 years.
The proposal has reportedly been discussed at the ministerial level and is under consideration by Saudi authorities.
Since 2019, Saudi Arabia has supported Pakistan through oil supply arrangements on deferred payments.
