Saudi Arabia has started supplying oil on deferred payments to Pakistan.
The first Saudi oil tanker carrying a shipment of light crude oil for Pakistan on deferred payments, docked at Karachi on Saturday evening, reported an international news agency.
“The MT Quetta carrying Arab Light crude has arrived at Karachi port from Saudi Arabia,” said Mahmood Moulvi, Adviser at the Maritime Affairs Ministry.
“Under deferred payment facility, Pakistan will receive oil worth $275 million every month,” he said, adding that the oil tanker was owned by the Pakistan National Shipping Corporation. For its first shipment, MT Quetta has carried 58,118 metric tons of oil for the Pak-Arab Refinery (PARCO).
Saudi Arabia’s deferred payment facility for oil imports to Pakistan came into effect on July 1st under which the country will receive $9.6 billion worth of oil from the kingdom over a period of three years.
Furthermore, Saudi Arabia has pledged to invest $21 billion into Pakistan which includes the construction of a modern oil refining facility and a petrochemical complex in Balochistan.
Last October, Saudi Arabia announced a $6 billion financial assistance package for Pakistan to help support its balance of payments crisis. Saudi Arabia deposited $3 billion directly with Pakistan while another one-year deferred payment facility of up to $3 billion for oil imports was agreed on, according to a memorandum of understanding signed by both countries.