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Saudi Arabia will provide Pakistan with oil on a Deferred Payment
ng to Federal Minister for Finance Shaukat Tareen, a day after the government increased the price of petroleum products to Rs 8.82, Saudi Arabia has agreed to supply oil to Pakistan on the basis of late payment.
According to the finance minister, Saudi Arabia will donate 150 150 million to Pakistan on a monthly basis and Riyadh will provide 3. 3.60 billion to Islamabad in two years.
“This money will be used to buy oil,” the finance minister said.
Federal Information Minister Fawad Chaudhry had claimed in May that Saudi Arabia had agreed in principle to resume the option of deferred payment for oil supplies to Pakistan.
During a visit to Saudi Arabia earlier this year, the Prime Minister requested that oil supplies to Pakistan be resumed on the basis of long-delayed payments.
Chaudhry replied, “Yes, it is almost done.”
Saudi Arabia had earlier offered a 6 6 billion financial package, of which 3 3 billion was deposited with the State Bank of Pakistan and ڈالر 3 billion was deferred with annual payments on the oil facility.
During Saudi Crown Prince Mohammed bin Salman’s visit to Pakistan, the first oil facility was contracted for three years. The facility continued in July 2019 with an agreement that the first year’s bill would be paid monthly and the second year’s oil would be purchased on a deferred basis.
As a result, when the oil supply matures in the third year, the entire facility will be shut down in the fourth year. At the time, it was estimated that Pakistan would need 27 275 million a month in oil supplies from Saudi Arabia, for a total of 3. 3.2 billion over three years.