ISLAMABAD: An agreement with Saudi Arabia to revive deferred payments for oil imports to Pakistan was “almost done,” the Pakistani minister of information was quoted by local media as saying, after Islamabad made a fresh request for a resumption of the facility during a recent visit of Prime Minister Imran Khan to the kingdom.
In 2018, Saudi Arabia agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis.
“The Saudi authorities have agreed in principle to grant their nod, but its exact details will be known when both sides will sign the formal deal,” Pakistan’s The News newspaper reported on Wednesday. “When Federal Minister for Information and Broadcasting Fawad Chaudhry was contacted and asked about the resumption of SOF [Saudi oil facility] for an extended period, he said, ‘Yes, it’s almost done’.”
“Islamabad is vying for all available alternative plans to overcome its external account problems and resumption of the SOF can go a long way to get the desired results,” the newspaper said. “Pakistan’s budget makers for the next fiscal year 2021-22 will get a sigh of relief in the wake of agreement with the Kingdom of Saudi Arabia (KSA) for resumption of Saudi Oil Facility (SOF) from a three to five years period.”
The previous oil facility from Saudi Arabia was signed for a three year period and made operational from July 2019 with the understanding that the first-year bill would be paid on a monthly basis and oil would be obtained on deferred payment in the second year.
“So, this whole facility would be ended in the fourth year upon the maturity of getting oil for the third year,” The News said. “It was assessed at that time that Pakistan would require a $275 million oil facility on a monthly basis from the KSA, so it accounted for $3.2 billion on per annum basis for three-year period.”
“Such facility was agreed upon for three years with the possibility of rollover of second and then third year. Both sides had agreed that this facility would be provided through the IDB’s Islamic Trade Finance Facility (ITFC). It is not known how much Pakistan had availed from the SOF in its first year, but then this facility got suspended. The IDB had also agreed to provide $1.5 billion oil facility on deferred payment, so in totality there was a provision of $4.7 billion oil on deferred payment,” The News reported.
Saudi agreement on deferred oil payments ‘almost done’ — Pakistani minister
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Saudi agreement on deferred oil payments ‘almost done’ — Pakistani minister
- In 2018, Saudi Arabia gave Pakistan $3 billion in foreign currency support for a year and loan worth up to $3 billion in deferred oil payments
- The previous oil facility from Saudi Arabia was signed for a three year period and made operational from July 2019
Pakistan’s first female central bank governor dies at 71
- Shamshad Akhtar led the State Bank of Pakistan from 2006 to 2009 and later served twice as caretaker finance minister
- Finance Minister Muhammad Aurangzeb describes Akhtar as an accomplished economist and an outstanding human being
KARACHI: Shamshad Akhtar, Pakistan’s first woman to serve as governor of the central bank and one of the country’s most internationally experienced economic policymakers, died at the age of 71, officials said on Saturday.
Akhtar led the State Bank of Pakistan from 2006 to 2009, becoming the first and only woman to lead the institution since its establishment in 1948. She later served twice as caretaker finance minister, overseeing fiscal management during transitional governments ahead of the 2018 and 2024 general elections.
According to local media reports, Akhtar died of cardiac arrest.
President Asif Ali Zardari expressed sorrow over her passing in a statement.
“The president paid tribute to her services in the field of economics and financial management, noting her contribution to strengthening economic governance in the country,” the presidency said, adding that he extended condolences to the bereaved family and prayed for the departed soul.
Finance Minister Muhammad Aurangzeb described Akhtar as a highly accomplished economist and an outstanding human being.
“Dr. Shamshad Akhtar was a dignified, principled and wise voice in Pakistan’s economic history,” he said.
He said she served Pakistan with integrity and dedication across several senior economic roles, adding that her national service would always be remembered with respect.
At the time of her death, Akhtar was serving as chairperson of the Pakistan Stock Exchange, a role that placed her at the intersection of Pakistan’s monetary policy, fiscal management and capital markets.
Beyond Pakistan, she held senior positions at major international institutions, including the World Bank, the Asian Development Bank and the United Nations Economic and Social Commission for Asia and the Pacific.
Born in Hyderabad, she was educated in Karachi and Islamabad and held advanced degrees in economics from institutions in Pakistan and the United Kingdom.
Akhtar was widely regarded as a technocrat known for institutional discipline, policy continuity and a strong commitment to economic reform.
With input from Reuters
