- A finance arrangement worth $1.2 billion for the import of petroleum products was inked.
- The parameters of the financing, include the price of acquisition by the SFD and a margin of 3.80 percent annually
- Pakistan bought $100 million worth of petroleum products on a deferred payment basis through the Saudi oil facility.
For the fourth consecutive month in June 2022, Pakistan imported petroleum products worth $100 million on a deferred payment basis through the Saudi oil facility.
According to official records, Saudi Arabia gave Pakistan petroleum supplies worth $400 million between March and June. Additionally, it supplied $100 million worth of petroleum products each in the months of March, April, and May 2022.
On November 29, 2021, the Saudi Fund for Development (SFD) and Pakistan’s Economic Affairs Division signed a financing agreement worth $1.2 billion for the import of petroleum products (EAD).
The National Refinery Limited (NRL) and the Pak-Arab Refinery Limited (PARCO) will import petroleum products from Saudi Arabia up to $100 million per month under the terms of this facility.
For the purpose of enabling the purchase of petroleum products on a deferred payment basis, the SFD has extended the financing facility for a period of one year, up to $100 million per month.
The parameters of the financing, according to the official records, include the price of acquisition by the SFD and a margin of 3.80 percent annually. The initial term of the Financing Agreement shall be for a period of one (1) year, which term may be mutually extended for an additional one (1) year.
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