HomePAKISTAN$100 Million Saudi Oil Facility Set to Resume This Month

$100 Million Saudi Oil Facility Set to Resume This Month

-

Prime Minister Shehbaz Sharif is currently on an official visit to Saudi Arabia, where the much-anticipated Saudi Oil Facility is set to commence disbursements starting March 2025.

This agreement will provide Pakistan with $100 million worth of oil every month, amounting to $1.2 billion over 12 months until February 2026.

This initiative is expected to play a crucial role in easing Pakistan’s economic pressures by ensuring a steady supply of oil on deferred payment terms.

Pakistan's Foreign Inflows and IMF Assistance

Out of the total $6 billion in expected foreign inflows, Pakistan has already received $1 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF).

  • $5 billion from Saudi Arabia
  • $4 billion from China

To meet this ambitious goal, Islamabad must secure an additional $4.4 billion in loans over the next Saudi Oil Facility four months (March to June 2025).

According to official data from the Economic Affairs Division (EAD), Pakistan has received $2.49 billion from multilateral creditors in the first eight months of the fiscal year.

This is below the targeted $4.57 billion, emphasizing the need for an expedited disbursement process.

  • Asian Development Bank (ADB): $1.09 billion
  • Asian Infrastructure Investment Bank (AIIB): $60.25 million
  • European Investment Bank (EIB): $10.53 million
  • World Bank (IBRD & IDA): $217.8 million and $642.5 million, respectively

China Emerges as Pakistan’s Largest Creditor

This amount is against an estimated $471.72 million, reflecting an urgent need for additional funding from friendly nations.

Breakdown of Bilateral Loans

  • France: $103.23 million (largest contributor)
  • China: $99.17 million
  • Germany: $26.81 million
  • Japan: $17.18 million
  • Korea: $11.76 million
  • Kuwait: $24.4 million
  • Saudi Arabia: $12.37 million
  • United States: $40.05 million

Apart from multilateral and bilateral creditors, the Islamic Development Bank (IsDB) has provided $148.26 million, with an additional $265.72 million as a short-term loan for commodity financing.

  • OPEC Fund: $3.34 million
  • Standard Chartered Bank London: $3.98 million
  • International Fund for Agricultural Development (IFAD): $36.93 million
Habib Ur Rehman
Habib Ur Rehman
Habib Ur Rehman is a passionate writer with a deep interest in technology, business, and current affairs in Pakistan. With years of experience analyzing trends and developments, Habib delivers insightful articles that keep readers informed and empowered. His work focuses on simplifying complex topics, bridging the gap between innovation and everyday life. Whether it's breakthroughs in tech, economic shifts, or the latest happenings in Pakistan, Habib’s writing offers valuable perspectives to a diverse audience.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read