Pakistan imports $100mln oil on deferred payment for second month

ISLAMABAD, May 26: Pakistan has imported petroleum products, worth $100 million, on a deferred payment basis under the Saudi oil facility for the second consecutive month in April 2022.According to details, Pakistan had signed an agreement worth $1.2 billion with Saudi Arabia for the import of petroleum products on a deferred payment basis in November 2021 during the Pakistan Tehreek-e-Insaf (PTI) government. According to the government sources, the brotherly country has provided petroleum products worth $100 million to Pakistan during April 2022. Saudi Arabia had also provided petroleum products worth $100 million during March 2022.Pakistan will import around 32.7 million barrels (MBL) of crude oil from Saudi Arabia in 2022 under the agreement with the Saudi Fund for Development (SFD) to meet its needs for petroleum products on deferred payment basis.Pak-Arab Refinery Company Limited (PARCO) and National Refinery Limited (NRL) will import 16.89 million barrels and 15.81 million barrels of crude oil respectively in 2022.The SFD programme has been operational since March 7, 2022, and the procurement of oil commenced accordingly in the same month. The repayment of the original amount plus the interest of 3.8 percent would be made in one annual instalment in US dollars.It is pertinent to mention here that Pakistan’s forex reserves have been depleting alarmingly in recent weeks. The facility will help the government which is struggling to build forex reserves at a sustainable level to control the rupee devaluation against the US Dollar and to make timely foreign payments. -TLTP