WEB DESK: Pakistan is poised to benefit from a $1.2 billion oil financing facility from Saudi Arabia, with monthly disbursements of $100 million set to commence in March 2025.
The announcement coincided with Prime Minister Shehbaz Sharif’s recent trip to Saudi Arabia, where the Saudi Oil Facility (SOF) was officially launched.
The financing is intended to bolster Pakistan’s oil imports, thereby helping to stabilize energy prices during a period of external financing difficulties.
According to the sources. This arrangement, which will run until February 2026, aims to alleviate the nation’s energy financing challenges.
This initiative is part of a broader framework of financial cooperation between Pakistan and Saudi Arabia, which has already deposited $5 billion with the State Bank of Pakistan (SBP).
The SOF is anticipated to significantly relieve pressure on the country’s foreign exchange reserves by lessening the immediate requirement for dollar expenditures on oil imports.
Negotiations with Saudi officials to reinstate this facility have been underway, building on similar financial support arrangements previously established. Officials are optimistic that the scheduled disbursements will be executed as planned, thus providing vital liquidity to the energy sector in Pakistan.
