Saudi Arabia is set to finalize a $1.2 billion oil deal with Pakistan in December 2025. Under this agreement, Pakistan will receive oil on a deferred payment basis, meaning it can pay later instead of upfront. The facility will provide Pakistan with $100 million in monthly cash flow over the next 12 months.
This deal is important for Pakistan as it seeks to secure a $7 billion loan under the Extended Fund Facility (EFF) from the International Monetary Fund (IMF). The additional financial support will help Pakistan manage its economic challenges and ensure a steady supply of energy.
Saudi Arabia has been a key partner in supporting Pakistan’s energy needs. The Kingdom has also invested in infrastructure and hydropower projects, helping improve Pakistan’s energy sector.
This agreement reflects the strong economic ties between the two countries and highlights Saudi Arabia’s commitment to Pakistan’s energy security. By providing oil on easy payment terms, Saudi Arabia is helping Pakistan manage its financial difficulties while ensuring a stable fuel supply for the country.
With energy being a major factor in economic growth, this partnership could help Pakistan strengthen its economy, attract more investment, and create new opportunities in the energy and infrastructure sectors.
