Summary Pakistan may get a bailout worth up to $15 billion from Saudi Arabia for its energy sector.
ISLAMABAD (Dunya News) - Saudi Arabia is expected to extend a bailout package of about $15 billion to Pakistan’s highly indebted energy sector by supplying crude and furnace oil on deferred payment to enable it to resolve the chronic circular debt issue.
Saudi Arabia had been taking reasonable interest in helping out the incoming Pakistan Muslim League (PML-N) government led by Nawaz Sharif. They had extended a similar special package to Pakistan soon after it went nuclear in 1998 and faced international economic sanctions.
Between 1998 and 2002, Pakistan received $3.5 billion worth of oil from Saudi Arabia on deferred payment, a major part of which was converted into grant.
Pakistan expects about 100,000 barrels of crude oil and about 15,000 tonnes of furnace oil per day from Saudi Arabia on deferred payment for three years worth about $12-15 billion.
