Saudi Arabia's promised deferred payment facility to Pakistan for the latter's oil imports will kick in from July 1, under which Pakistan will receive petroleum products worth $275 million every month, Radio Pakistan reported on Wednesday.

Quoting a tweet by Adviser to the Prime Minister on Finance Hafeez Shaikh, Radio Pakistan stated that the kingdom will export petroleum products worth $3.2 billion to Pakistan every year for the next three years.

The finance adviser said that the facility will "strengthen Pakistan's balance of payments position", and thanked Saudi Crown Prince Mohammed bin Salman for "his continuous support for the people of Pakistan".

Minister for Planning, Development and Reforms Khusro Bakhtiar also hailed the news, adding that the facility would have a positive effect on the stock market.

In a statement, Bakhtiar said that the deferred payment facility "will reduce the pressure [created by the] outflow of foreign exchange". He also thanked the Saudi government for the facility.

Last year, Riyadh had agreed to provide a bailout package of $6bn to help resuscitate Pakistan's worsening economy. According to the agreement, $3bn were to be provided in foreign currency to address Pakistan's balance of payments crisis. A deferred payment facility for the import of oil worth up to another $3 billion was also part of the package.