ISLAMABAD ( WNAM REPORT ): Saudi Arabia has pledged to extend a $1 billion oil financing facility to Pakistan during the current fiscal 2025–26, while also rolling over $5 billion in deposits, officials from the Ministry of Finance confirmed on Monday.
According to ministry officials, the $1 billion oil facility will help Pakistan meet its energy import requirements and ease pressure on its foreign reserves. Officials said, the Kingdom will also roll over $5 billion in time deposits currently placed with the State Bank of Pakistan. Of the amount, $2 billion is due in December and $3 billion in June of 2026.
During the first quarter of the current fiscal year, Pakistan received over Rs85 billion worth of oil supplies under the Saudi facility, equal to about $300 million. The facility provides roughly $100 million per month, translating to Rs28.37 billion monthly in local currency.
The Saudi deposits, carrying a 4% annual interest rate, have been renewed each year to support Pakistan’s external account. The total value of the deposits stands at approximately Rs1.45 trillion, extended as budgetary support. Officials said the continuation of these facilities underscores Riyadh’s commitment to Pakistan’s economic stability amid persistent fiscal challenges.
