ISLAMABAD, Feb 21: Pakistan will receive $1.6 billion external cash budgetary grant, including $903 million Saudi oil facility by June, it is learnt on Friday.

Official sources told Dawn that while the US government had not indicated to offer anything to Pakistan by mid-year, Saudi Arabia, Japan, the European Union and the United Kingdom would be extending their share of cash grants before June 30.

The Bush administration pledged about $200 million for 2003 but has not indicated to disburse any amount by June this year. The US had disbursed a one-time $600 million cash budgetary grant in 2002.

In addition to $1.6 billion external cash budgetary grant, Pakistan has been assured that it will separately receive $1.6 billion as part of the financing from multilateral agencies and commercial banks by June. This includes $615 million from the World Bank, $400 million from the Asian Development Bank, $400 million from foreign commercial banks and $200 million from privatization of some state sector units.

Also, officials confirmed that Pakistan had secured about 50 per cent of its total $3.5 billion oil imports on deferred payments from Saudi Arabia, UAE and Kuwait for 2003. In case of an oil price increase because of a war in the region, the government is expected to get the real benefit due to having the commodity on deferred from these countries.

Pakistan signed last month an agreement with Saudi Arabia for uninterrupted oil supplies worth $1.3 billion on deferred payments for the whole year.

Kuwait has also agreed to supply furnace oil on the 60-day deferred payment basis.

Sources said the country’s foreign exchange position was generally stable with $9.5 billion reserves.