AVN 48.00 Increased By ▲ 0.52 (1.1%)
BAFL 29.49 Decreased By ▼ -0.01 (-0.03%)
BOP 3.66 Decreased By ▼ -0.01 (-0.27%)
CNERGY 3.25 Increased By ▲ 0.02 (0.62%)
DFML 10.02 Increased By ▲ 0.05 (0.5%)
DGKC 49.75 Increased By ▲ 2.25 (4.74%)
EPCL 43.00 Decreased By ▼ -0.60 (-1.38%)
FCCL 12.02 Increased By ▲ 0.18 (1.52%)
FFL 5.88 Increased By ▲ 0.07 (1.2%)
FLYNG 5.69 Increased By ▲ 0.09 (1.61%)
GGL 9.96 Increased By ▲ 0.21 (2.15%)
HUBC 68.28 Increased By ▲ 0.08 (0.12%)
HUMNL 5.66 Decreased By ▼ -0.01 (-0.18%)
KAPCO 21.95 Decreased By ▼ -0.15 (-0.68%)
KEL 1.83 Increased By ▲ 0.03 (1.67%)
LOTCHEM 27.40 Decreased By ▼ -0.05 (-0.18%)
MLCF 27.51 Decreased By ▼ -0.29 (-1.04%)
NETSOL 72.48 Increased By ▲ 2.31 (3.29%)
OGDC 74.68 Increased By ▲ 0.63 (0.85%)
PAEL 9.85 Increased By ▲ 0.30 (3.14%)
PIBTL 3.88 No Change ▼ 0.00 (0%)
PPL 57.19 Increased By ▲ 0.49 (0.86%)
PRL 13.90 Decreased By ▼ -0.10 (-0.71%)
SILK 1.10 Increased By ▲ 0.07 (6.8%)
SNGP 40.85 Decreased By ▼ -0.20 (-0.49%)
TELE 6.58 Increased By ▲ 0.23 (3.62%)
TPLP 11.45 Decreased By ▼ -0.16 (-1.38%)
TRG 94.61 Increased By ▲ 4.01 (4.43%)
UNITY 12.29 Decreased By ▼ -0.06 (-0.49%)
WTL 1.28 Increased By ▲ 0.17 (15.32%)
BR100 4,129 Increased By 30.5 (0.74%)
BR30 13,984 Increased By 131.4 (0.95%)
KSE100 41,340 Increased By 375.5 (0.92%)
KSE30 14,663 Increased By 131.5 (0.91%)
Follow us

ISLAMABAD: The Saudi Fund for Development (SFD) and Pakistan, on Thursday, signed a new agreement to finance oil derivatives worth $1 billion to Pakistan.

The agreement was signed by Chief Executive Officer (CEO) of SFD, Sultan Abdulrahman Al-Marshad, and Secretary Ministry of Economic Affairs Dr Kazim Niaz in the presence of Saudi Arabia and Pakistani officials.

The Ministry of Economic Affairs issued a statement that states “aimed at supporting Pakistan’s economy, sector growth, and navigating economic challenges, the strategic agreement signed comes as a continuation of the support provided by the Government of Saudi Arabia to the brotherly country Pakistan to build a sustainable economy. In 2019 and 2021, the SFD signed agreements to finance oil derivatives with a value of $4.44 billion.”

The agreement marks the latest steps taken by the government of Saudi Arabia through the SFD and the Pakistani authorities to enhance development in the country. Since the Fund’s establishment, the SFD has supported more than 40 projects and programs in different development sectors valued approximately at USD 1.4 billion to finance Pakistan’s energy, water, transportation, and infrastructure projects.

KSA, Pakistan likely to ink over $1bn agreement in oil sector

The Finance Ministry last month informed the Senate regarding the oil purchase agreement, while saying that the Saudi government through SFD has offered an oil facility on deferred payments worth $1 billion for 10 months. The terms of the financing include the price of purchase by SFD along with a margin of 3.80 percent per annum. The said agreement was submitted for approval of the Cabinet. As soon as Cabinet’s approval was received, the agreement would be signed.

Regarding the new agreement, the EAD stated that in implementation of the directives from King Salman bin Abdulaziz Al Saud, and the Crown Prince, Mohammed bin Salman Al Saud; the CEO of the SFD, Sultan Abdulrahman Al-Marshad, and the Secretary Ministry of Economic Affairs in Pakistan, DrKazimNiaz, signed an agreement to finance oil derivatives worth $1 billion to Pakistan.

Earlier, the financing agreement worth $1.2 billion for the import of petroleum products was signed in November 2021 between the SFD and Pakistan’s Economic Affairs Division (EAD). Under this facility, the Pak-Arab Refinery Limited (PARCO) and the National Refinery Limited (NRL) are importing petroleum products up to $100 million per month from Saudi Arabia.

According to the official documents, the terms of the financing include the price of purchase by the SFD and a margin of 3.80 percent per annum. The EAD data shows that Pakistan imported petroleum products worth $500 million on a deferred payment basis under the Saudi oil facility during the first five months of the current fiscal year 2022-23.

The country imported petroleum products worth $100 million on a deferred payment basis under the Saudi oil facility for the ninth consecutive month in November 2022, taking the total imports to $0.9 billion. Saudi Arabia also provided petroleum products worth $100 million each during March, April, May, June, July, August, September, and October 2022.

Copyright Business Recorder, 2023


1000 characters

Deal signed with SFD to finance oil derivatives worth $1bn

Rupee sustains losses, settles at 285.42 against US dollar

COAS says efforts to weaken army’s bond with people will never succeed

Army has directly or indirectly remained in power during last 70 years: Imran Khan

Investor optimism lifts KSE-100 by nearly 1%

Punjab polls: SC adjourns hearing of ECP’s plea

National Savings to launch Shariah-compliant savings, term accounts soon: Ishaq Dar

Lahore ATC sends Dr Yasmin Rashid to jail on 14-day judicial remand

ICC leaders in Pakistan to secure World Cup participation

MCB Bank to conduct Silkbank’s due diligence

Gulf stock markets volatile on US debt deal, economic worries