Pakistan’s Imports Under Saudi Oil Facility Near $0.7 Billion in 7 Months of FY23

Pakistan imported petroleum products worth $690.11 million on a deferred payment basis under the Saudi oil facility during the first seven months of the current fiscal year 2022-23 against the budgeted estimates of $800 million for the entire fiscal year. Official documents revealed that the country imported petroleum products worth $90.11 million on a deferred payment basis under the Saudi oil facility in January 2023. Saudi Arabia also provided petroleum products worth $100 million each during March, April, May, June, July, August, September, October, November, and December 2022. The financing agreement worth $1.2 billion for the import of petroleum products was signed in November 2021 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. 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.