Pakistan has formally requested the Kingdom of Saudi Arabia (KSA) to extend the Saudi Oil Facility (SOF) for another two years after the expiry of the existing $1.2 billion arrangement.
According to a report by a national daily, Islamabad has submitted a fresh request to Riyadh to continue the facility until the completion of Pakistan’s ongoing International Monetary Fund (IMF) programme and is awaiting Saudi Arabia’s formal response.
The current Saudi Oil Facility is scheduled to expire next month, prompting Pakistan to seek an extension in advance.
Under the existing arrangement, Saudi Arabia provides $100 million per month in deferred oil payments, with monthly bills settled under the facility. Meanwhile, a key Pakistani economic delegation is currently visiting Saudi Arabia, where discussions are also focused on boosting bilateral ties and attracting Saudi investment across multiple sectors under the Special Investment Facilitation Council (SIFC) framework.
If renewed, Pakistan could receive another $1.2 billion from Saudi Arabia over the next year, with the arrangement potentially running until mid-2027.
Meanwhile, Pakistan’s economic managers are also racing against time to secure the rollover of $2 billion in deposits from the United Arab Emirates (UAE) parked with the State Bank of Pakistan.
Only about 12 days remain before the extended deadline expires. Earlier, the UAE had granted a one-month extension after the original maturities of $1 billion on January 17 and another $1 billion on January 23, 2026. Islamabad has now formally requested a one-year rollover until February 16, 2027.
Failure to secure the rollover will require Pakistan to repay the $2 billion within the current month, putting additional pressure on the country’s foreign exchange reserves.
Form 47 govt ka kaam sirf bheek manna hi reh gaya hay.