Shock to Pakistan – Saudi Arabia is not giving crude oil even after repaying debt, pleading for help
Pakistan has not received crude oil on loan from Saudi Arabia since May, it has not yet received any reply from the supplier about continuation of this facility.
According to the report, the term of the $ 3.2 billion agreement between the two sides has already expired two months ago. Pakistan has urged Saudi Arabia to expand the system, but has not received a response yet. According to the news agency, Saudi Arabia announced a $ 6.2 billion package in November 2018 to address Pakistan’s external concerns. The $ 3.2 billion crude oil facility from Saudi Arabia is part of this package.
Petroleum Department spokesman Sajid Kazi said the deal expired in May. The finance department is trying to renew it. He said that Pakistan is awaiting reply from the Saudi Arabian government.
According to the budget estimates, Sarkar expects to get a minimum of one billion dollars of crude oil in the financial year 2020-21. Pakistan’s fiscal year begins in July.
The report says that Pakistan has repaid Saudi Arabia’s loan of one billion dollars four months ahead of time. Sources have been quoted as saying that if Pakistan gets a similar facility from China, it will also be in a position to repay a two billion dollar cash loan.
There is a provision of two years of renewal in Saudi Arabia’s $ 3 billion cash support and $ 3.2 billion in crude oil facilities annually.