ISLAMABAD: Pakistan has imported oil worth $100 million on deferred payment basis under the Saudi oil facility for the seventh consecutive month in September 2022.
According to official documents, the government has allocated an estimated $800 million in its budget for oil imports through the Saudi oil facility. In the first three months of the current fiscal year, the country imported petroleum products worth $300 million.
Between March and September, Pakistan received petroleum supplies from Saudi Arabia worth $700 million. Additionally, it supplied oil products worth $100 million each in March 2022, April 2022, May 2022, June 2022, July 2022, and August 2022.
The Financing Agreement worth $1.2 billion for the import of petroleum products was signed on 29 November 2021 between the Saudi Fund for Development (SFD) and Pakistan’s Economic Affairs Division (EAD).
Under this facility, the Pak-Arab Refinery Limited (PARCO) and the National Refinery Limited (NRL) will import petroleum products up to $100 million per month from Saudi Arabia.
For the purpose of enabling the purchase of petroleum products on a deferred payment basis, the SFD has extended the financing facility for a period of one year, up to $100 million per month.
The price of acquisition by the SFD and a margin of 3.80% annually are included in the financing arrangements, according to the official documentation. The initial term of the Financing Agreement shall be for a period of one (1) year, which term may be mutually extended for an additional one (1) year.
