Pakistan seeks two-year extension of $1.2 billion Saudi oil facility

Pakistan has formally requested the Kingdom of Saudi Arabia to extend the $1.2 billion Saudi Oil Facility for a further two years after the current arrangement expires next month, The News reported, citing official sources.

The request seeks continuation of the facility through the completion of Pakistan’s programme with the International Monetary Fund (IMF). Under the existing arrangement, Saudi Arabia provides $100 million per month in oil supplies, with deferred payment terms.

Officials said that if approved, the extension could allow Pakistan to access up to $1.2 billion over the next year, with the facility potentially running until mid-2027. The Ministry of Finance and the Ministry of Petroleum have not issued formal comments on the request.

Members of Pakistan’s economic team are currently in Saudi Arabia, where discussions also include broader bilateral engagement and potential Saudi investment under the Special Investment Facilitation Council framework.

Separately, Pakistan is seeking a rollover of $2 billion in deposits placed by the United Arab Emirates with the State Bank of Pakistan, as the extended deadline approaches later this month.

The UAE had earlier granted a one-month extension after the original maturities in January. Officials said a request has now been made to roll over the full amount for one year, until February 2027, with discussions ongoing.

If the rollover is not secured, Pakistan would be required to repay the $2 billion within the current month, officials said.