ISLAMABAD: The Kingdom of Saudi Arabia (KSA) will activate a $3.2 billion deferred payment facility with Pakistan for petroleum products from the start of July, the Adviser to Prime Minister on Finance, Revenue, and Economic Affairs Dr Abdul Hafeez Shaikh said on Wednesday.
According to Shaikh, the facility will be worth $275 million per month and will amount to $3.2 billion per year for a duration of three years.
In a tweet, Adviser to PM thanked the Crown Prince of Saudi Arabia for his continuous support for the people of Pakistan.
The facility would help strengthen Pakistan’s balance of payments position as the country battles a current account crisis, Shaikh added.
2./ From 1st July 2019 KSA is activating the deferred payment for petroleum products facility of US$ 275mn per month amounting to US$3.2 Billion per year for 3 years. This will strengthen Pakistan's Balance of Payments position.
— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) May 22, 2019
Minister of State for Revenue Hammad Azhar appreciated the development said that it would greatly help Pakistan’s foreign exchange reserves as well.