Cabinet approves summaries to revive Saudi support package, oil facility for Pakistan

Published November 27, 2021
In this file photo, Prime Minister Imran Khan chairs a meeting of the federal cabinet at the PM Office. — PPI/File
In this file photo, Prime Minister Imran Khan chairs a meeting of the federal cabinet at the PM Office. — PPI/File

The deal to revive Saudi Arabia's $3 billion support package for Pakistan in safe deposits and $1.2bn worth of oil supplies on deferred payments cleared its final hurdle on Saturday as the prime minister and his cabinet approved a pair of summaries in this regard.

A summary drafted by the Finance Division noted that after the draft of the deposit agreement between the two countries was vetted and cleared by the Ministry of Law as well as as the Office of the Attorney General for Pakistan, it was sent to the prime minister.

The summary, a copy of which are available with Dawn.com noted that the prime minister, "in view of the urgency to relieve the current pressures on the exchange rate," approved its placement before the cabinet. The summary stated that the one-year agreement would carry an annual profit rate of four per cent.

A separate summary drafted by the Ministry of Economic Affairs pertained to the oil facility amounting to $100 million per month for a year, which it said can also be extended by another year with mutual consent. It noted that the terms of financing include price of purchase by the Saudi Fund for Development (SFD) along with a margin of 3.80pc.

Minister for Economic Affairs Omar Ayub Khan authorised the submission of the summary to the federal cabinet.

Later in the day, the cabinet ratified both the summaries, as confirmed to Dawn News by Information Minister Fawad Chaudhry.

The revival of both the deposit as well as the oil facility were agreed during Prime Minister Imran Khan's visit to the kingdom in October.

On Thursday, Chaudhry had said that all legal issues in the transfer of the $3bn deposit had been cleared and Pakistan would receive the amount this week.

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