According to senior government sources in Islamabad, Pakistan has formally requested an extension of the $1.2 billion Saudi Oil Facility (SOF) from Saudi Arabia for another two years after its expiry, reports said.
This request is made to continue the facility until the completion of the current IMF program.
Sources said that the Pakistani government has sent a new request to the Saudi authorities and is now awaiting formal approval. According to officials, the Saudi oil facility has been an important means for Pakistan to reduce foreign exchange pressure and facilitate oil imports.
On the other hand, the Ministry of Petroleum and the Ministry of Finance have refrained from giving any position on the matter despite repeated contacts. The silence in government circles is being linked to sensitive diplomatic and financial negotiations.
According to experts, if the Saudi oil facility is extended, it could help Pakistan maintain fiscal discipline during the IMF program and stabilize the energy sector, but the final decision will be subject to Saudi Arabia’s approval.
