RIYADH: Saudi Arabia has increased its financial backing to Pakistan by expanding its oil supply arrangement on deferred payment terms, according to an official statement. The agreement indicates that the oil credit extended by Saudi Arabia has now reached $800 million in the first eight months of the current fiscal year, spanning July 2025 to February 2026. This marks a notable increase in energy support aimed at alleviating Pakistan’s external financial pressures.
In February 2026 alone, Pakistan was allocated an additional $100 million under this scheme, continuing the Kingdom’s consistent monthly assistance. The arrangement guarantees a steady flow of oil supplied on deferred payments, which assists Pakistan in conserving its foreign exchange reserves and managing its economic stability.
Details reveal that Saudi Arabia is providing a monthly oil credit of $100 million to Pakistan, demonstrating an ongoing and reliable commitment throughout the fiscal year. Experts project that the total oil credit from Saudi Arabia will reach $1 billion by the end of the current financial year, further reinforcing the economic partnership between the two nations.
Economic analysts highlight that this deferred oil payment system plays a vital role in easing Pakistan’s immediate financial burdens, especially as the country works to stabilize its economy and fulfill external funding requirements. The continued support from Saudi Arabia not only reflects strong diplomatic relations but also underscores a strategic economic alliance, as Pakistan strives to secure its energy needs while addressing balance of payments challenges.
