Pakistan to start receiving Saudi oil on deferred payment

In this file photo, Saudi Arabia’s Minister of Energy Khalid Al-Falih signs a Memorandum of Understanding (MoU) with his Pakistani counterpart in Islamabad on Feb. 17, 2019. Crown Prince Mohammed bin Salman and Prime Minister Imran Khan also witnessed the signing ceremony. (PID)
Updated 03 July 2019

Pakistan to start receiving Saudi oil on deferred payment

  • Supplies will continue over the next three years, with a total value of $9.9 billion
  • The facility is part of $20 bn Saudi economic support package for Pakistan

ISLAMABAD: Pakistan will start receiving Saudi oil on deferred payment facility from July 1, a press statement from the Saudi embassy in Islamabad confirmed late Monday.
“Pakistan will start receiving monthly oil supplies worth $275 million from Saudi Arabia with effect of July 1, 2019,” the embassy said in a statement.
These supplies will continue over the next three years, with a total value of $9.9 billion, the statement added.
In October 2018, Saudi Arabia announced a $20 billion economic support package for Pakistan, which included $3 billion to support balance of external payments in addition to oil import facility on deferred payment. 
Saudi embassy said that the package showed “keenness of Saudi leadership to support Pakistan’s economy for achieving financial stability and help the government to overcome the economic challenges and push the comprehensive development in Pakistan, and to emphasize the depth of relations between the two brotherly counties and people.”
Dr. Vaqar Ahmed Joint Executive Director at Sustainable Development Policy Institute (SDPI), an Islamabad based think-tank, said that “this will bring significant relief to the balance of payment situation in Pakistan,” which is already struggling to narrow down the current account gap. “Any arrangement which can allow Pakistan deferred payment of its oil supplies will certainly be welcomed.”
“This will also provide certainty to the industry which of course requires sustained oil supplies as input and raw material,” Ahmed added calling the move “a great help for Pakistan in pressing times.”
According to official figures, Pakistan spends more than $16 billion each year on importing 26 million tons of petroleum products, including 800 million cubic feet of Liquefied Natural Gas (LNG) from Saudi Arabia, the UAE and other Gulf countries.
Pakistan and Saudi Arabia enjoy deep-rooted economic ties. During the visit of Crown Prince Mohammed bin Salman to Pakistan in February 2019, the Kingdom signed several agreement and memoranda of understandings (MoUs) pledging to invest $20bn in Pakistan to boost its depleting foreign exchange reserves — including establishing a $10bn oil refinery in the port city of Gwadar in Balochistan province.


Hundreds of Pakistanis stranded in Saudi Arabia return home on special flight

Updated 31 May 2020

Hundreds of Pakistanis stranded in Saudi Arabia return home on special flight

  • This was the eighth PIA special flight to bring Pakistani nationals back from the Kingdom
  • Earlier, over 15,000 Pakistani Umrah pilgrims were brought home on special flights 

ISLAMABAD: A repatriation flight with 251 stranded Pakistanis on board departed for Karachi from Jeddah, the Consulate General of Pakistan in Saudi Arabia said in a statement on Sunday.
This was the eighth special flight of the national carrier, Pakistan International Airlines (PIA), from Jeddah following the coronavirus related suspension of routine international flight operations in the Kingdom on March 15.

Pakistani nationals wait for a special flight to Karachi at Jeddah’s King Abdulaziz International Airport on May 31, 2020. (Photo courtesy: Pakistan Consulate General in Jeddah)


“Consul General Khalid Majid and Deputy Consul General Shaiq Ahmed Bhutto were present at Jeddah International Airport to bid farewell to the passengers,” the statement said.

“A total of around 1,700 Pakistanis have so far been repatriated from Jeddah region through seven special flights,” the statement added, and said similar special PIA flights were also being operated from Riyadh region.

Pakistani nationals wait for a special flight to Karachi at Jeddah’s King Abdulaziz International Airport on May 31, 2020. (Photo courtesy: Pakistan Consulate General in Jeddah)


“Embassy of Pakistan at Riyadh and the Consulate General at Jeddah in close cooperation of PIA, are coordinating arrangements of these special flights in their respective jurisdictions.”

Saudi Arabia halted all international travel and suspended Umrah pilgrimage in response to the pandemic in March this year.

Over the months, Pakistan has brought back over 15,000 of its nationals who had gone to Saudi Arabia for Umrah but found themselves stranded amid coronavirus lockdowns in the Kingdom.