Saudi Arabia will provide Pakistan with a $1 billion oil financing facility and roll over $5 billion in deposits during the ongoing fiscal year 2025–26, according to sources.
The oil facility, valued at approximately Rs. 290 billion, aims to ease Pakistan’s external financing pressures and support its energy import needs. Officials said that in the first quarter of FY2025-26, Pakistan had already received oil supplies worth over Rs. 85 billion, equivalent to $300 million, under this arrangement.
Saudi Arabia is currently extending oil financing of $100 million per month to Pakistan, which amounts to roughly Rs. 28.37 billion in local currency.
In addition to the oil support, Riyadh has agreed to roll over $5 billion worth of deposits placed with the State Bank of Pakistan at an annual interest rate of 4%. Of these, $2 billion is maturing in December 2025 and $3 billion in June 2026.
The deposits valued at around Rs. 1.45 trillion were initially provided as budgetary support and have been renewed annually to bolster Pakistan’s foreign exchange reserves.
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Look at your economic conditions. The authorities will clap and celebrate over this development considering it to be an achievement. This should be a matter of shame for us to survive on rolls over and loans for oils. I don’t think we can ever learn. We have developed insensitivity towards such issues.