For the third consecutive month in May 2022, Pakistan bought petroleum products worth $100 million on a delayed payment basis through the Saudi oil facility.
According to official records made accessible to sources, Saudi Arabia sent Pakistan petroleum goods worth $300 million between March and May. In March and April 2022, it also delivered petroleum products for a combined $100 million.
On November 29, 2021, the Saudi Fund for Development (SFD) and Pakistan’s Economic Affairs Division inked a financing agreement worth $1.2 billion for the import of petroleum products (EAD).
The National Refinery Limited (NRL) and the Pak-Arab Refinery Limited (PARCO) would import petroleum products from Saudi Arabia for up to $100 million per month under the terms of this facility.
For the purpose of enabling the purchase of petroleum products on a deferred payment basis, the SFD has extended the financing facility for a period of one year, up to $100 million each month.
The parameters of the financing, according to the official records, include the price of acquisition by the SFD and a margin of 3.80 percent annually. The initial term of the Financing Agreement shall be for a period of one (1) year, which term may be mutually extended for an additional one (1) year.
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