Oil import to Pakistan on deferred payment facility from Saudi Arabia starts this month

Oil import to Pakistan on deferred payment facility from Saudi Arabia starts this month

As per the announced economic package by the Crown Prince Muhammad Bin Salman, the oil imports from Saudi Arabia on deferred payment facility will be starting this month. Under the agreement, Pakistan would be able to receive oil supplies worth 275 million USD on a monthly basis. The total worth of the agreement would be 9.9 billion USD for a period of three years.

Pak Arab Refinery (PARCO) and National Refinery Limited (NRL) would be receiving crude oil from Saudi Aramco Product Trading Company and Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) would procure petroleum and LNG supplies from the Saudi company. The testing of products would be conducted by an independent laboratory at the loading port as the import would be done on CFR/CIF basis. Saudi supplier insisted to go this way, as it was not in favor of the testing at the discharging port by Hydrocarbon Development Institute of Pakistan (HDIP)

Apart from the oil supplies, additional support of 3 billion USD was also announced by His Highness MBS to aid the deficit of the balance of payments of the country. During his visit to Pakistan earlier this year, he had a very friendly interaction with the Prime Minister Imran Khan and quite fruitful developments were witnessed to support the economy of Pakistan to attain sustainability. His Highness showed his keen interest to indicate the depth of relations between the two brotherly countries and peoples.

Pakistan is also expecting aids from the International Monetary Fund (IMF), Asian Development Bank (ADB), World Bank (WB) and economic support from Qatar which would further mitigate the current economic chaos. The exchange rate which reached historic heights is also expected to diminish by the massive inflow of funds.

I am an accountant with over 3 years of experience in the field of Accounts and Finance. I contribute to e-Syndicate as Researcher and News Writer. I write about Finance, Business, Local Pakistani News and International Finance.