Pakistan seeks $1.2 billion oil facility from Saudi Arabia
To address the $2-2.5 billion financing shortfall identified by the International Monetary Fund (IMF) for the current fiscal year, Pakistan has approached Saudi Arabia for a $1.2 billion Saudi oil facility (SOF) over the next 12 months, according to official sources. However, no statement was given regarding this by finance ministry.
Pakistan has signed a staff-level agreement with the IMF under the $7 billion Extended Fund Facility (EFF), however this agreement still requires approval from the IMF’s Executive Board.
Additionally, Saudi Arabia is interested to get a 15% stake in the Reko Diq project through a two-phase investment, though this transaction has not yet happened.
Pakistan had also requested a $400 to $500 million loan from the Islamic Development Bank’s ITFC facility and seeks $1 billion in loans from Gulf commercial banks and Standard Chartered Bank (SCB).
To meet the total funding requirement of $26.2 billion for the current fiscal year, Pakistan is asking three bilateral creditors to extend $12 billion in deposits held with the State Bank of Pakistan and is seeking $4 billion in commercial refinancing.
In a recent statement, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb reaffirmed Pakistan’s dedication to a domestic economic strategy focused on broad institutional reforms. These comments were made during a meeting with Saudi Ambassador Nawaf Bin Said Al-Malki at the Finance Division.
Senator Aurangzeb deeply expressed gratitude for Saudi Arabia’s ongoing economic support to Pakistan. and highlighted the renewed interest of Saudi investors in joint ventures with Pakistan’s private sector.
Ambassador Malki praised Pakistani government efforts for implementing the structural and institutional reforms and reaffirmed Saudi Arabia’s commitment to supporting Pakistan’s economic development.
