Saudi Arabia has agreed on the resumption of oil supply to Pakistan on deferred payments said Federal Minister for Information Fawad Chaudhry on Tuesday.
Prime Minister Imran Khan on his recent visit had discussed this and had asked the Saudi authorities to resume supply of oil on deferred payments.
The exact details will be shared when both sides sign the agreement formally.
Pakistan will use all available options to mitigate its external account problems and the resumption of oil supply on deffered payments will surely help us in achieving it.
There were some things from both Pakistan and Saudi Arabia’s side that dented the relationship in the last year or so. From Pakistan’s side, PM Imran’s statements in public regarding mediation between Iran and Saudi Arabia as well as the formation of a new block is what irked Saudi leadership.
While Saudi Arabia’s silence on the Kashmir issue is what irked Pakistani leadership. It can be linked to US pressure on Pakistan through KSA to solve the Kashmir crisis but in discussions, the Saudi side did not hint at the US pressure and instead played hardball on their own.
After this, Pakistan had to return $1billion from $3bn which Saudi Arabia had given as a loan.
This development comes at a time when the government is preparing for the next year’s budget and is being deemed as a huge relief.
The previous oil facility from KSA was signed for three years during the visit of Saudi Crown Prince Mohammad Bin Salman to Pakistan. This facility was made operational from July 2019 with the understanding that the first-year bill would be paid on monthly basis and then second-year oil would be obtained on deferred payment.
