Pakistan’s economy received a significant boost from Saudi Arabia, which has agreed to provide a $1 billion oil facility this fiscal year and roll over $5 billion in existing deposits, according to the finance ministry.
The oil financing facility, valued at Rs290 billion, is being extended under Saudi Arabia’s continued economic partnership with Pakistan.
Official documents reveal that over Rs85 billion worth of oil, equivalent to $300 million, was already supplied in the first three months of the current fiscal year.
Saudi Arabia is providing $100 million worth of oil per month, which equals around Rs28.37 billion. The facility helps Pakistan meet part of its oil import needs without immediate payment pressures.
$5bln deposits rolled over
In addition to the oil support, Saudi Arabia has also rolled over $5 billion in deposits placed with the State Bank of Pakistan (SBP) to strengthen foreign exchange reserves.
Officials confirmed that $2 billion will mature in December 2025, while $3 billion will be due in June 2026. These deposits carry an interest rate of 4% and are renewed annually as part of the kingdom’s financial assistance.
Finance ministry officials noted that the Saudi deposits, equivalent to Rs1,450 billion, are categorised as budgetary support loans, helping Islamabad maintain fiscal stability and investor confidence.
