ISLAMABAD: Finance minister Shaukat Tarin informed Pakistan’s Senate on Friday the country would start using from next month a $1.2 billion Saudi facility allowing Islamabad to defer payments for oil imports.
A $4.2 billion Saudi support package, which included a $1.2 billion oil loan facility, was agreed during Prime Minister Imran Khan's visit to Riyadh in October last year. In December, Pakistan received the $3 billion loan but the oil facility is yet to be put into use.
The South Asian nation is facing a wide range of economic challenges, with high inflation, sliding forex reserves, a widening current account deficit and a depreciating currency.
“We went to Saudi Arabia and told [its government] that oil prices are rising so give us [oil] on deferred payments,” the finance minister said. “We have not used the deferred payment facility until now. We will use it from next month.”
Tarin said Pakistan had been using its own reserves at the moment.
Saudi Ambassador to Islamabad Nawaf bin Said Al-Malki met Pakistan’s federal minister for economic affairs, Omar Ayub Khan, last week to discuss the facility. The two had agreed to operationalize the oil facility at the “earliest.”
The financing agreement for the oil facility was signed last November between the Saudi Fund for Development (SFD) and the Pakistani Economic Affairs Division.
“As per Financing Agreement, the SFD will extend the financing facility up to $100 million per month for one-year for purchase of petroleum products on deferred payment basis,” a statement from Pakistan’s Ministry of Economic Affairs had read.
Pakistan to start using Saudi oil facility next month — finance minister
https://arab.news/65d58
Pakistan to start using Saudi oil facility next month — finance minister
- $4.2 billion Saudi package, including $1.2 billion oil facility, was agreed during PM Khan’s visit to Riyadh last October
- Pakistan is facing a wide range of economic challenges, including high inflation, sliding forex reserves and a depreciating currency
Pakistan cabinet reviews private Hajj policy as mandatory pilgrim training enforced
- Cabinet sends draft Private Hajj Policy 2027–2030 to committee for further review
- Religion minister warns pilgrims who skip mandatory training will be barred from Hajj
ISLAMABAD: Pakistan’s federal cabinet on Wednesday reviewed proposals for stricter oversight of private Hajj operators, as authorities separately warned that pilgrims who failed to complete mandatory training would be barred from performing Hajj next year.
The cabinet, chaired by Prime Minister Shehbaz Sharif, was briefed on a draft Private Hajj Policy for 2027–2030, which includes third-party registration and scrutiny of private Hajj operator companies, according to a statement from the Prime Minister’s Office.
“The Federal Cabinet directed that the draft Private Hajj Policy 2027–2030, presented by the Ministry of Religious Affairs and Interfaith Harmony regarding third-party registration and scrutiny of private Hajj operators’ companies, be referred to the Hajj Policy Committee for further deliberation in light of the views of Cabinet members,” the prime minister’s office said in a statement.
The development comes as Religious Affairs Minister Sardar Muhammad Yousaf said on Wednesday pilgrims who failed to attend both phases of mandatory Hajj training would not be allowed to perform the pilgrimage.
“Pilgrims who do not complete mandatory Hajj training will be barred from performing Hajj,” the ministry quoted Yousaf as saying during a training workshop in Islamabad.
Around 120,000 pilgrims are currently undergoing training at 200 locations nationwide, with the second phase scheduled to begin after Ramadan. The training aims to familiarize pilgrims with Saudi laws, Hajj rituals and safety protocols to prevent accidents in crowded areas.
Saudi Arabia has allocated 179,210 pilgrims to Pakistan for Hajj 2026, including about 118,000 seats under the government scheme, while the remainder will be handled by private tour operators.
Under Pakistan’s government Hajj package, the estimated cost ranges from Rs1.15 million to Rs1.25 million ($4,049.93 to $4,236), subject to final agreements with service providers.
