Pakistan’s economy received a major boost as Saudi Arabia agreed to provide a $1 billion oil facility this fiscal year. The finance ministry confirmed the extension, which will help Pakistan meet oil import needs without immediate payment pressure. The facility is part of Saudi Arabia’s ongoing economic partnership with Pakistan, supporting energy security and fiscal stability.
Official documents reveal that over Rs85 billion ($300 million) worth of oil was already supplied in the first three months of this fiscal year. Saudi Arabia is providing roughly $100 million worth of oil per month, equivalent to about Rs28.37 billion. This arrangement ensures Pakistan can secure critical oil supplies while managing cash flow challenges during the year.
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In addition to the oil facility, Saudi Arabia has rolled over $5 billion in deposits with the State Bank of Pakistan (SBP). These deposits, structured as budgetary support loans, help maintain Pakistan’s foreign exchange reserves and fiscal stability. Officials said $2 billion will mature in December 2025, while the remaining $3 billion will be due in June 2026.
The deposits carry a 4% interest rate and are renewed annually under Saudi Arabia’s financial assistance framework. Finance ministry officials noted that the support strengthens investor confidence and ensures Islamabad can manage fiscal and economic pressures effectively. The total deposits are valued at approximately Rs1,450 billion.
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This renewed support highlights Saudi Arabia’s strategic role in bolstering Pakistan’s economy. It strengthens bilateral ties while providing Islamabad with vital resources to stabilize energy supply and fiscal reserves. The government said the assistance would help sustain ongoing economic programs and support investor confidence in Pakistan’s financial stability.