Islamabad (Commerce Desk) — Pakistan has requested a $6.7 billion concessional oil financing package from Saudi Arabia to help address the potential impact of ongoing tensions in the Middle East and rising global oil prices.
A spokesperson for the Ministry of Economic Affairs confirmed that a new deferred payment facility for oil supplies from Saudi Arabia is currently under discussion between the two countries.
According to sources, Pakistan has requested a 15-year oil financing facility worth $6.7 billion at an interest rate of 1 percent. Ministerial-level talks between the two countries have already taken place regarding the proposal.
Under the proposal, Pakistan has requested a five-year grace period before repayments begin, with the full amount to be repaid over a total period of 15 years. The Ministry of Economic Affairs said consultations between the two governments are ongoing.
The spokesperson also confirmed that Pakistan has formally requested the Saudi Fund for Development to provide the 15-year oil financing facility at a 1 percent interest rate.
Saudi Arabia has been supplying oil to Pakistan on a one-year deferred payment basis since 2019. The most recent agreement was signed in February 2025, and its term expired in April 2025.
Earlier, the Saudi Fund for Development and Pakistan’s Ministry of Economic Affairs had signed an agreement for $1.2 billion in oil import financing at an interest rate of 6 percent.