ISLAMABAD: Pakistan has signed an agreement with Saudi Arabia under which the Kingdom will extend oil facility of $100 million per month ($1.2 billion annually) for one year to South Asian nation on deferred payment.
The agreement was signed in the presence of Minister for Economic Affairs Omar Ayub Khan and Chief Executive Officer of Saudi Fund for Development (SFD) Sultan Bin Abdul Rahim Al-Marshad.
As per the agreement, SFD will provide a financing facility to Pakistan on the import of crude oil and petroleum products which will be extended for another year.
The CEO SFD, on the occasion, said that his country holds its relations with Pakistan in high esteem and assured to extend full their support for the implementation of development projects in Pakistan.
Later talking to the media persons, Minister for Economic Affairs Omar Ayub Khan said that this agreement is a reflection of exemplary friendship between Pakistan and Saudi Arabia.
He said that Saudi Arabia will deposit $3 billion in cash in the State Bank of Pakistan which will help bring stability to the value of the rupee and control inflation.
The minister said that Pakistan greatly values bilateral and brotherly relations with Saudi Arabia. He thanked the Saudi Government for supporting Pakistan in every critical hour.
Earlier, on November 29, Pakistan and Saudi Arabia signed an agreement to pave way for a $3 billion deposit in the State Bank of Pakistan (SBP).
Under this deposit agreement, SFD shall place a deposit of USD3.0 billion with SBP.
It is the second financial assistance package that the kingdom has extended to Pakistan in the past three years, aiming to help the country manage a brewing external sector crisis.
The Kingdom of Saudi Arabia had extended a similar package valued at $6 billion in October 2018 to provide breathing space to Pakistan before the country went to the International Monetary Fund for an extended loan facility.