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
