Pakistan’s economy received a major boost from Saudi Arabia, which has committed a $1 billion oil financing facility for this fiscal year and agreed to roll over $5 billion in existing deposits, the finance ministry confirmed.
The oil facility is part of Saudi Arabia’s ongoing economic partnership with Pakistan. Official records show that around $300 million worth of oil has already been supplied in the first three months of the current fiscal year. Under this arrangement, Saudi Arabia provides $100 million in oil every month, enabling Pakistan to meet part of its oil import needs without immediate payment pressure.
In addition, the kingdom has rolled over $5 billion in deposits with the State Bank of Pakistan (SBP) to bolster foreign exchange reserves. Of these, $2 billion will mature in December 2025 and $3 billion in June 2026.
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These deposits, carrying a 4 percent interest rate and renewed annually, are classified as budgetary support loans, helping Islamabad maintain fiscal stability and strengthen investor confidence.
