ISLAMABAD: In a major boost to Pakistan’s external finances, Saudi Arabia has extended a $1 billion oil facility and rolled over $5 billion in deposits with the State Bank of Pakistan (SBP), the Finance Ministry confirmed on Monday.
According to official sources, the oil financing arrangement — worth around Rs290 billion — is part of the Kingdom’s ongoing economic support for Pakistan. Documents show that oil supplies worth $300 million (Rs85 billion) were delivered during the first quarter of the current fiscal year under the arrangement.
At present, Saudi Arabia is providing $100 million worth of oil each month, roughly equivalent to Rs28 billion, allowing Pakistan to import petroleum products without facing immediate payment pressure.
The Finance Ministry also confirmed that Riyadh has rolled over its $5 billion deposits with the SBP to help bolster Pakistan’s foreign exchange reserves and maintain macroeconomic stability.
Of the total deposits, $2 billion will now mature in December 2025, while the remaining $3 billion will be due in June 2026. These deposits, renewed annually, carry an interest rate of 4 percent and are treated as budgetary support loans, officials said.
Finance officials added that the Saudi assistance — amounting to nearly Rs1.45 trillion — reflects continued confidence in Pakistan’s reform efforts and provides much-needed breathing space for the government as it works to manage fiscal and external challenges.
Read more:https://nayakashmir.com/sbp-keeps-interest-rate-unchanged-at-11-amid-economic-pressures/
