Pakistan Imported Petroleum Products Worth $100 Million Under Saudi Oil Facility in September

Pakistan imported petroleum products worth $100 million on a deferred payment basis under the Saudi oil facility for the seventh consecutive month in September 2022. Official documents revealed that the government has budgeted estimates of $800 million for oil imports under the Saudi oil facility. The country has imported petroleum products worth $300 million in the first three months of the current fiscal year. Saudi Arabia also provided petroleum products worth $100 million each during March, April, May, June, July, and August 2022. The Financing Agreement worth $1.2 billion for the import of petroleum products was signed last November between the Saudi Fund for Development (SFD) and Pakistan’s Economic Affairs Division (EAD). Under this facility, the Pak-Arab Refinery Limited (PARCO) and the National Refinery Limited (NRL) will import petroleum products up to $100 million per month from Saudi Arabia. The SFD has extended the financing facility to facilitate the purchase of petroleum products on a deferred payment basis. According to the official documents, the terms of the financing include the price of purchase by the SFD and a margin of 3.80 percent per annum.