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 plans 3,000 EV charging stations as green mobility push gathers pace

Updated 14 January 2026
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Pakistan plans 3,000 EV charging stations as green mobility push gathers pace

  • Roadmap unveiled by energy efficiency regulator and a private conglomerate amid early-stage EV rollout
  • New EV Policy and related plans aim to install 3,000 EV stations by 2030, including 240 stations in current fiscal year

ISLAMABAD: Pakistan’s energy efficiency regulator and a private conglomerate have unveiled an approved roadmap to establish 3,000 electric vehicle (EV) charging stations across the country, state-run Associated Press of Pakistan (APP) reported on Tuesday.

The announcement comes as Pakistan looks to build out basic EV charging infrastructure, which remains limited and unevenly distributed, largely concentrated in major cities. Despite policy commitments to promote electric mobility as part of climate and energy-efficiency goals, the absence of a nationwide charging network has slowed broader EV adoption.

Pakistan’s EV ecosystem is still at a formative stage, with progress constrained by regulatory approvals, grid connectivity issues and coordination challenges among utilities, regulators and fuel retailers. Expanding charging infrastructure is widely seen as a prerequisite for scaling electric transport for both private and commercial use.

According to APP, the roadmap was presented during a meeting between Malik Group Chief Executive Officer Malik Khuda Baksh and National Energy Efficiency and Conservation Authority Managing Director and Additional Secretary Humayon Khan.

“Baksh ... in a meeting with Khan, unveiled the approved roadmap for establishing 3,000 electric vehicle charging stations across Pakistan,” APP reported. “Khan reaffirmed the authority’s full institutional backing and pledged to expand the initiative to 6,000 EV charging stations nationwide.”

The discussion reviewed hurdles delaying the rollout, including EV charger imports, customs duties, regulatory documentation and inter-agency coordination.

APP said Khan welcomed the proposal and sought recommendations for “internationally compliant EV charger brands,” while asking for a detailed “issue-and-solutions report within three days” to facilitate timely implementation of the national green mobility initiative.

Despite the issuance of 13 licenses by NEECA and the arrival of five EV charging units at designated sites, progress has been slowed by procedural bottlenecks, officials said. These include delays in electricity connections, prolonged installation of separate meters and pending no-objection certificates from power distribution companies and oil marketing firms, which continue to stall operational readiness.

Pakistan’s electric vehicle ecosystem is still in its early stages, with charging infrastructure far behind levels seen in more advanced markets. The government’s New Energy Vehicle Policy and related plans aim to install 3,000 EV charging stations by 2030, including 240 stations planned in the current fiscal year, but actual deployment remains limited and uneven, mostly clustered in major cities and along key urban corridors.

Despite regulatory backing, including the 2024 Electric Vehicles Charging Infrastructure and Battery Swapping Stations framework, progress has been slow. Many proposed stations have yet to become operational due to delays in grid connections and approvals, and public maps of nationwide charging coverage are not yet available.

Private players are beginning to install more chargers, and there are over 20 public EV charging points reported in urban centers, offering both slower AC chargers and faster DC options. However, such infrastructure is still sparse compared with the growing number of electric vehicles and the government’s long-term targets.