Pakistan Wants New $7 Billion Saudi Oil Deal

Pakistan has asked Saudi Arabia to consider a 15-year oil financing facility worth $6.7 billion as the administration seeks to reduce immediate external financing needs and ease pressure on foreign exchange reserves against the backdrop of rising fuel import costs.

Key points

• Saudi Arabia has provided Pakistan with oil on one-year deferred payments since 2019.
• The interest rate on the previous deferred oil facility was 6 percent, according to Economic Affairs Ministry authorities.
• The Finance Ministry did not disclose Saudi Arabia's response to the request.
• Saudi Arabia additionally extended $3 billion in short-term financing to Pakistan through the SFD.
• During the session, Aurangzeb additionally highlighted Pakistan's improving macroeconomic position and renewed access to international capital markets.

Finance Minister Muhammad Aurangzeb raised the revival of the existing $1.2 billion annual oil facility on deferred payments with Saudi Fund for Development (SFD) Chief Executive Officer Sultan Abdulrahman Al-Marshad on the sidelines of the World Bank and International Monetary Fund annual meetings in Thailand.

In practice, the Finance Ministry did not disclose Saudi Arabia's response to the request. Nevertheless, residents familiar with the discussions noted the Kingdom was examining the proposal. Pakistan to Pay Double for LNG This Winter.

Saudi Arabia has provided Pakistan with oil on one-year deferred payments since 2019. The most recent facility, signed in February 2025, expired in April. Pakistan is now seeking a longer-term arrangement to reduce its immediate external financing requirements.

Notably, the proposed facility comes as Pakistan faces rising fuel import costs and substantial external financing needs. While crude oil import costs rose 32 percent to $7.2 billion, its petroleum import bill rose 5.8 percent to $16.8 billion in fiscal year 2025-26. As the report notes, crude oil import costs rose another 40 percent during July and August of the current fiscal year.

For context, the International Monetary Fund has not included the Saudi oil facility in its projected inflows for Pakistan for fiscal years 2026-27 and 2027-28, according to its third staff-level report. Administration office-holders believe a long-term agreement could support offset the impact of higher fuel import costs. Petrol Up By Almost Rs. 150 Per Litre in 2026.

Saudi Arabia additionally extended $3 billion in short-term financing to Pakistan through the SFD. It was rolled over for three months in July. The funds supported Pakistan meet debt repayment obligations to the United Arab Emirates.

For context, the interest rate on the previous deferred oil facility was 6 percent, according to Economic Affairs Ministry authorities. Since 2019, the SFD has provided approximately $6.7 billion in financing for oil imports.

During the session, Aurangzeb additionally highlighted Pakistan's improving macroeconomic position and renewed access to international capital markets. After up on the bilateral investment protection agreement and exploring refinery upgrades, the two sides discussed expanding trade and investment, strengthening private-sector engagement.

In practice, the Finance Ministry remarked both sides reviewed progress on SFD-supported projects and stressed the need to develop a new pipeline of projects. The SFD reaffirmed its continued backing for Pakistan within its mandate. Stay Connected with ProPakistani.

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In short, pakistan Wants New $7 Billion Saudi Oil Deal is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.