Saudi Arabia announces major aid to Pakistan. Saudi Arabia's 3 billion support to Pakistan's foreign exchange reserves, oil facility on late payment.

Saudi Arabia announces major aid to Pakistan. Saudi Arabia's 3 billion support to Pakistan's foreign exchange reserves, oil facility on late payment.

Riyadh: The results of Prime Minister Imran Khan's visit to Saudi Arabia have begun to emerge.

Fawad Chaudhry says that Saudi Arabia has announced to keep 3 billion in the Central Bank of Pakistan while the Saudi government will also supply 1.2 billion worth of refined oil to Pakistan this year.

Pakistan's Energy Minister Hamad Azhar has said that Saudi Arabia has announced to provide 1.2 billion worth of oil to Pakistan annually and to deposit 3 billion in the State Bank of Pakistan.

In his message on Twitter, he said that Pakistan would not have to pay for this oil immediately but it would be available under the facility of late payment.

According to Azhar, the Saudi Development Fund's measures will help ease the pressure on Pakistan's trade and foreign exchange accounts due to rising global prices.

It may be recalled that at present Pakistan is witnessing a sharp decline in the value of the Pakistani rupee against the dollar and in just four months the value of the dollar has risen by more than Rs 20. Pakistan's Energy Minister Hamad Azhar said Saudi Arabia has announced to supply 1.2 billion worth of oil to Pakistan annually and to deposit 3 billion in the State Bank of Pakistan.

According to Saudi Arabia's state-run news agency SPA, the Saudi Development Fund said in a statement on Tuesday that 3 billion would be deposited in Pakistan's central bank on royal directives to boost Pakistan's foreign exchange reserves. And to help the government deal with the problems caused by the Corona epidemic.

As per the Saudi Development Fund, on the imperial order, an asset worth 1.2 billion in oil will likewise be given to Pakistan inside a year.

It may be recalled that this 'economic package' was announced by Saudi Arabia after the recent visit of the Prime Minister of Pakistan Imran Khan to Saudi Arabia.

Imran Khan paid a three-day visit to Saudi Arabia this week at the greeting of Saudi Crown Prince Muhammad Salman.

This is not the first time that Saudi Arabia has been providing oil facility to Pakistan on late payment and in the past this facility has been provided to Pakistan by Saudi Arabia.

Earlier, in 1998, when the United States imposed economic sanctions on Pakistan over its nuclear program, Pakistan was in the grip of a severe financial crisis. In this situation, Saudi Arabia even then began to lend Pakistan three billion dollars a year.


Similarly, in 2014, when Pakistan needed foreign exchange to maintain its balance of payments, Saudi Arabia provided 1.5 billion in cash to Pakistan, which was used to improve its foreign exchange reserves.

This is the third time during the PTI rule that this facility is being provided to Pakistan by Saudi Arabia.


After the PTI government came to power, Saudi Arabia provided 3 billion to Pakistan in late 2018 to stabilize its foreign exchange reserves, along with about ً9 billion on three-year deferred payments. An agreement was also reached to supply oil up to Rs.


Saudi Arabia also provided oil worth 275 million a month to Pakistan for nine months, but Saudi Arabia abruptly suspended the facility.


Then in June this year, Energy Minister Hamad Azhar and Special Revenue Assistant to Prime Minister Imran Khan Waqar Masood announced that Pakistan would receive 1.5 billion in oil from Saudi Arabia on a one-year deferred payment.

Pakistan imports up to 10 billion worth of products for its energy needs and the import of RLNG brings the energy sector's imports to 14-15 billion.