ISLAMABAD: Advisor to Prime Minister on Finance Dr Abdul Hafeez Shaikh from July 01, 2019 Saudi Arabia is activating the deferred payment for petroleum facility of $275 million per month to Pakistan.
Dr Hafeez took to Twitter to share the news with the Pakistani nation.
He said “Would like to Thank The Crown Prince of Saudi Arabia His Highness Muhammad Bin Salman for his continuous support for the people of Pakistan. From 1st July 2019 KSA is activating the deferred payment for petroleum products facility of US$ 275mn per month amounting to US$3.2 Billion per annum for 3 years.”
He went on to say "This will strengthen Pakistan's Balance of Payments position.”
In February 2019, Pakistan and Saudi Arabia signed agreement to make oil facility on deferred payment up to $3 billion operational and Islamabad will get breathing space of $250 million on account of import of oil on monthly basis.
Top official sources at Finance Division had confirmed to The News that the oil facility on deferred payment was signed during the visit of Crown Prince Mohammed bin Salman (MBS) and Islamabad was going to avail oil facility valuing $250 million on monthly basis.
“This kind of breathing space will help us on account of balance of payment front but the relatively higher current account deficit (CAD) is causing pressures on foreign currency reserves on monthly basis which continuously resulted into depletion in the range of $1 to $1.5 billion. Until and unless we overcome this level of cash bleeding on monthly basis we cannot declare ourselves out of danger zone of eruption of balance of payment crisis,” top official sources said while talking to The News.