Federal Cabinet approves oil purchase agreement with Saudi Arabia

Islamabad: The federal cabinet approved an oil purchase agreement with Saudi Arabia on a deferred payment. 

According to details, approval was given in the meeting of the federal cabinet through circulation summary. Circulation summary was sent to the Cabinet by the Economic Division.

Under the agreement, Saudi Arabia will lend Pakistan monthly fuel of 100 million dollars. Initially, the contract is for one year, which can be extended later.

The Ministry of Finance, SBP and FBR agreed on the draft of the Pak-Saudi agreement.

Deferred payments were promised during Prime Minister Imran Khan’s visit to Saudi Arabia.

The Saudi Crown Prince had promised to provide fuel to Pakistan on deferred payment for one year. Under the agreement, the government of Pakistan will have to pay 3.80% margin along with the payment of fuel.