ISLAMABAD: Pakistan has requested the Kingdom of Saudi Arabia (KSA) for an extension in the Saudi Oil Facility (SOF) for two more years after the expiry of the existing $1.2 billion facility, The News has learnt.
“We have made a fresh request to KSA for granting an extension in SOF till the completion of ongoing IMF programme and awaiting for their formal nod,” top official sources confirmed while talking to The News here on Tuesday. However, the Ministry of Petroleum and Ministry of Finance preferred to keep mum on the issue. The existing Saudi Oil Facility is set to expire in the coming month, so Islamabad sent out a request to KSA for granting an extension in this facility. Under the ongoing arrangement, the KSA provides $100 million for provision of securing oil, and then monthly bills are dispatched for disbursement. An important delegation from Pakistan’s economic team has been visiting Saudi Arabia, where talks are also focused on strengthening bilateral relations and encouraging Saudi investment in various sectors of Pakistan’s economy under the umbrella of SIFC.
If the SOF were put in place, Pakistan could receive another $1.2 billion from Saudi Arabia over the coming year, with the arrangement potentially running until mid of 2027.
Meanwhile, Pakistan’s economic managers are running against time as only 12 days are left for securing the rollover of $2 billion deposits from the UAE lying into the State Bank of Pakistan. Pakistan has got one-month extension as the original deadline of $1 billion was due on January 17, the second $1 billion was due on January 23, 2026. The UAE granted one-month extension. Now the Ministry of Finance has made a fresh request to secure the rollover of one-year period till Feb 16, 2027.
“We have made a request to the UAE and are quite hopeful that both sides will move towards settlement till the deadline,” one top official of the Finance Division confirmed to The News on Tuesday night. He said that parleys with the UAE are underway and positive outcome is expected. If Pakistan remained unable to secure the rollover, then Islamabad will have to repay $2 billion within the ongoing month.
