Saudi Arabia turns off oil tap for Pakistan over deferred payments

The development comes at a time when Pakistan faces a challenging situation as its IMF programme also remains technically suspended for the past five months

Pakistan has not received oil on deferred payments from Saudi Arabia since May as a deal signed between the two close allies for provision of $3.2 billion worth of the fuel under the arrangement expired two months ago.

The $3.2-billion Saudi oil facility was part of the $6.2-billion Saudi Arabian package announced in November 2018 to ease Pakistan’s external sector woes, the Express Tribune reported.

The agreement expired in May and efforts are being made by the finance division to renew the facility, the petroleum division spokesperson Sajid Qazi was quoted as saying by the paper.

Pakistan is awaiting response