On Saturday, the federal cabinet has confirmed the agreement allowing the government to buy oil on deferred payments from the Kingdom of Saudi Arabia, Daily Times reported.
The cabinet gave its approval through a circulation summary.
According to the agreement, the Saudi government would provide $100 million worth of oil every month to the government of Pakistan on deferred payment.
Meanwhile, Saudi Crown Prince Mohammed bin Salman has shown willingness to provide oil to Pakistan on deferred payment during Prime Minister Imran Khan’s visit to the kingdom.
The government of Pakistan will have to pay a margin of 3.80% with the principal amount when it repays for the commodity.
On the other hand, the contract is for one year but the period could be increased.
The Finance Ministry, State Bank of Pakistan and Federal Board of Revenue have agreed to the draft of the Pak-Saudi contract.
