Saudi Arabia agrees to defer Pakistan’s $1.2 billion oil payment

Pakistan’s Prime Minister Shehbaz Sharif (center) witnesses the signing of an agreement with the Saudi Fund for Development (SFD) in Islamabad on February 3, 2025. (PID)
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Updated 04 February 2025
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Saudi Arabia agrees to defer Pakistan’s $1.2 billion oil payment

  • Saudi facility can help Islamabad boost foreign reserves ahead of first review of IMF bailout
  • Petroleum products mostly from Saudi Arabia make the major chuck of Pakistan’s import bill

ISLAMABAD: Saudi Arabia has agreed to defer a $1.2 billion payment on Pakistan’s oil imports by one year, the Saudi Fund for Development (SFD) said on Monday.
The Saudi facility to defer the payment can help Islamabad boost its foreign reserves ahead of the first review of a $7 billion IMF bailout due in March. The agreement comes as Pakistan continues to navigate a tricky economic recovery path and implement tough conditions attached to the IMF loan program.
Since the Fund’s establishment, SFD has supported more than 40 projects and programs valued at approximately $1.4 billion to finance energy, water, transportation and infrastructure projects in Pakistan.
“Following the directives of the Saudi wise leadership, and in the presence of the Prime Minister of the Islamic Republic of Pakistan H.E Shehbaz Sharif, #SFD CEO Mr. Sultan Al-Marshad signed today an agreement with Pakistan’s Secretary Ministry of Economic Affairs, Dr. Kazim Niaz, to finance oil derivatives worth USD 1.2 billion for #Pakistan,” the SFD said on X.

Sharif welcomed the signing of the agreement under which Pakistan will receive oil on deferred payment for one year, his office said.
“This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal burdens,” it said in a statement.
Pakistan also finalized a loan agreement for a Gravity Flow Water Supply Scheme in Mansehra district of the northwestern Khyber Pakhtunkhwa province under which the SFD will provide $41 million to enhance access to clean drinking water for at least 150,000 people, according to Sharif’s office.
The SFD has also proposed a partnership with the Pakistan government to offer training programs for young Pakistanis and impart “modern and relevant” skills to meet labor market demands in Saudi Arabia.
Pakistanis constitute one of the largest migrant communities in Saudi Arabia with an estimated 2.64 million working there as of 2023. While 97 percent of them are blue-collar workers, there is a growing demand for skilled labor in the Kingdom as it seeks to modernize its economy under the Vision 2030 scheme.


Pakistan alarmed as Russia-Ukraine conflict intensifies, calls for immediate ceasefire

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Pakistan alarmed as Russia-Ukraine conflict intensifies, calls for immediate ceasefire

  • Pakistan envoy urges both sides to resolve ongoing conflict through peaceful means during Security Council briefing
  • Russia last Friday fired hypersonic ballistic missile capable of carrying nuclear warhead at Ukraine, drawing criticism

ISLAMABAD: Pakistan’s UN Ambassador Iftikhar Ahmad this week expressed alarm as the Russia-Ukraine conflict intensifies, calling for an immediate ceasefire and demanding both countries resolve their issues peacefully through dialogue. 

The development takes place days after Russia last week fired an intermediate-range hypersonic ballistic missile at Ukraine called Oreshnik. The move drew sharp criticism as the missile is capable of carrying nuclear and conventional warheads. Russia said it fired the Oreshnik in response to what Moscow says was an attempted Ukrainian drone attack on Dec. 29 against one of Putin’s residences in northern Russia. Ukraine denies Moscow’s claims. 

February 2026 will mark four years since Russia launched its full-scale invasion of Ukraine, triggering the worst armed conflict in Europe since World War II. The war has killed hundreds of thousands of people and forced millions to flee their homes.

“We are alarmed by the recent intensification in fighting with escalation in attacks from both sides, further worsening the already dire humanitarian situation,” Ahmad said on Monday during a UN Security Council briefing on the Ukraine conflict. 

“Such actions not only perpetuate the conflict, but they also undermine trust, and the ongoing efforts for peace.”

The Pakistani envoy urged both sides to abide by the principles of international law and ensure civilians and civilian infrastructure are protected during the conflict. He said Pakistan’s position on resolving the issue through dialogue has not changed. 

“Now, more than ever before, the overwhelming global opinion is on the side of ending this conflict through peaceful means,” Ahmad said. “This can only be achieved through a sustained, meaningful and structured dialogue.”

US President Donald Trump has been pushing both sides to strike a deal to halt the conflict, running shuttle diplomacy between Ukraine’s Volodymyr Zelensky and Russia’s Vladimir Putin in a bid to get an agreement across the line. Plans to broker peace collapsed after an initial 28-point plan, which largely adhered to Moscow’s demands, was criticized by Kyiv and Europe.

Ahmad appreciated the US for attempting to resolve the conflict through peaceful means. 

“We hope that all sides would make full use of the ongoing diplomacy, demonstrate genuine political will, and engage constructively to make meaningful strides toward a peaceful and negotiated settlement of the conflict, starting with an immediate ceasefire,” he said.