Decision on launch date of $100m Saudi oil facility soon

ISLAMABAD: Amid inability to kick-start disbursement of $100 million in the shape of Saudi Oil Facility (SOF) so far, the government has fetched $6.5 billion from all bilateral and multilateral creditors, including the IMF, during the first nine months (July-March) period of the current fiscal year.

A top official of the government disclosed to The News on Monday night that the Saudi Oil Facility (SOF) of $1.2 billion was signed between the two sides for one year, but it could not be started yet. The official said that the last stumbling block was the signing between PARCO and Saudi authorities, which had already been done, and now it would start soon. There are two possibilities--- one is to kick-start the oil facility from the Kingdom of Saudi Arabia from the ongoing month (April 2025), or it might be given a two-month facility starting from March 2025.

Official data released the Economic Affairs Division (EAD) shows that the total disbursements from multilateral and bilateral creditors stood at $5.5 billion in the first nine months (July-March) period but it did not show $1billion tranche received from the IMF because it is booked on balance sheet of the State Bank of Pakistan. Overall, Pakistan has secured foreign loans and grants, including those of the IMF, to the tune of $6.5billion in the first nine months of the current fiscal year against $6.9billion received in the same period of the last financial year. Pakistan has so far secured commercial loans of $559.6 million against budgetary estimates of $3.7 billion for the whole financial year. The government could not launch any International bonds so far. Through Naya Pakistan Certificates, the government has fetched $1.4billion so far.

From multilateral creditors, the government secured foreign project loans of $2.8 billion in the first nine months out of a total projection of $4.5 billion for the whole financial year. In March 2025, the total disbursements from multilateral creditors stood at $336.7 million.

China has provided a guaranteed loan of $306million. The Asian Development Bank (ADB) has so far disbursed close to $1.2 billion in the first nine months of the current fiscal year. The AIIB has disbursed $82million so far. The WB’s IBRD loan disbursement stood at $259.14million and IDA loan funding of $720.8million.

The IFAD has disbursed $37million. The IsDB has disbursed $148.5million and IsDB short-term financing of $375.7 million.

The bilateral creditors have so far disbursed $358.5 million against total budgetary estimates of $471.7 million for the whole financial year. France has become the largest bilateral partner for making disbursement to the tune of $108million, China $99.17million, Germany $32.64million, Korea $28.88million, Saudi Arabia $13.8million and the USA $40million.