ISLAMABAD, Dec 13 (Reuters) – Pakistan is searching for monetary assist from Saudi Arabia that may embody doubling the present deferred oil cost facility given by Riyadh to $2.4 billion per 12 months, Finance Minister Ishaq Dar mentioned on Tuesday.
Pakistan is struggling to satisfy its exterior financing obligations within the face of low overseas alternate reserves that hardly lined a month of imports, and can also be beset by decades-high inflation that has slowed down its financial system.
“I’ve mentioned each issues (monetary assist and oil amenities) with the Saudi finance minister, and there are optimistic vibes from there. They mentioned they’ll help us,” Dar mentioned throughout an interview with native tv channel Samaa.
He mentioned the federal government was in contact with Saudi authorities, however didn’t give a timeframe for the help. Reuters earlier reported that Pakistan expects the help this month.
Dar additionally mentioned that Islamabad was buying discounted oil from Russia, and that he had mentioned the matter with officers from the U.S. State Division again in October.
Dar mentioned U.S. officers had advised him {that a} G7 pricing committee was being arrange for Russian oil merchandise and that there can be a worth cap.
“(They mentioned) you should not purchase (oil) for above that, and I agreed,” he mentioned.
Pakistan has traditionally imported most of its oil and fuel merchandise from the Center East. However, with power making up a majority of its imports, it’s searching for discounted oil to decrease its present account deficit.
Pakistan’s petroleum minister travelled to Moscow final month and mentioned that Russia had agreed to sell Pakistan petroleum merchandise at a reduced worth.
Reporting by Gibran Peshimam
Modifying by Gareth Jones
Our Requirements: The Thomson Reuters Trust Principles.
