ISLAMABAD: Saudi Arabia has pledged to provide a $1 billion oil financing facility to Pakistan for the current fiscal year 2025–26, aimed at supporting the country’s energy imports and stabilising its external accounts.
According to officials from the Ministry of Finance, Saudi Arabia has also agreed to roll over $5 billion in deposits held with the State Bank of Pakistan (SBP). Of the total amount, $2 billion will mature in December 2025, while the remaining $3 billion will be extended until June 2026.
The oil facility, extended through the Saudi Fund for Development, enables Pakistan to import petroleum products on deferred payment terms. In the first quarter of the fiscal year, Pakistan has already received oil supplies worth Rs85 billion (around $300 million) under this arrangement, averaging nearly $100 million per month.
Officials said the deposits carry an annual interest rate of 4 percent, providing critical support to the country’s balance of payments amid tight fiscal conditions.
The financial support reflects Riyadh’s continued confidence in Pakistan’s economic management and reform efforts. It also marks another step in the deepening economic and strategic partnership between the two nations.
Prime Minister Shehbaz Sharif is expected to hold further discussions with Saudi leadership during his ongoing visit to Riyadh, focusing on investment, energy cooperation, and trade expansion under the bilateral economic framework.
Analysts view the Saudi pledge as a timely boost for Pakistan, helping to maintain energy supplies and reduce immediate pressure on foreign exchange reserves while the government pursues broader economic reforms.
Saudi Arabia has pledged to extend a $1 billion oil financing facility to Pakistan during the current fiscal 2025–26.
