Pakistan seeks revival of Saudi deferred oil facility, eyes over $6 billion concessional financing over 15 years

Pakistan has asked Saudi Arabia to restore its yearly deferred-payment oil facility worth $1.2 billion, according to Profit, which cited The Express Tribune. Islamabad is also pursuing a concessional oil financing deal of $6.7 billion spread over 15 years, aimed at easing pressure on foreign exchange reserves. On Tuesday, Finance Minister Muhammad Aurangzeb took up the matter with Saudi Fund for Development chief executive Sultan Abdulrahman Al-Marshad, meeting in Thailand during the World Bank and IMF annual gatherings.

Although the Finance Ministry's official statement omitted the oil facility, Tribune reported that insiders say Riyadh is weighing the request. The previous deferred payment deal, signed in February 2025, lapsed in April 2026 and carried a 6% interest rate, Economic Affairs Ministry officials said. Since 2019, successive deferred payment arrangements have brought about $6.7 billion of oil financing from Saudi Arabia.

Petroleum imports rose 5.8% last fiscal year to $16.8 billion, while crude purchases climbed 32% to $7.2 billion. Costs for crude imports grew by a further 40% in July and August, within the present fiscal year. The IMF estimates the country's gross external financing needs at close to $30 billion for FY28, and its third staff-level report leaves Saudi oil inflows out of FY27 and FY28 forecasts.