Pakistan will start receiving the promised deferred payment facility on petroleum imports from Saudi Arabia from the start of new fiscal year, a press statement issued by the Saudi embassy in Islamabad said on Monday.
“Pakistan will start receiving monthly oil supplies worth $275 million from Saudi Arabia with effect from July 1, 2019,” the embassy said in a notification. “These supplies will continue over the next three years, with a total value of $9.9 billion,” it added.
The two countries had inked a financing agreement for the import of petroleum products, crude oil and LNG on February 17 during the Saudi crown prince’s Islamabad visit earlier this year. The oil facility had been announced in November and it was initially expected to become operational from January 1. However, due to various procedural and regulatory issues it took seven months to make the facility operational by July 1, which coincides with the start of new fiscal year.
