$6.7b oil facility sought from Saudi

[HAIDER]

$6.7b oil facility sought from Saudi​

15-year loan at 1% interest from SFD; total Saudi cash deposits up to $8b

Pakistan has sought a $6.7 billion concessional oil financing facility from Saudi Arabia for a period of 15 years, aimed at ensuring energy security amid heightened Middle East conflict that may keep global prices high and put additional stress on the country's foreign exchange reserves.

A spokeswoman of the Ministry of Economic Affairs confirmed to The Express Tribune that the matter of Saudi oil facility on deferred payments was under discussion.

The sources said Pakistan was actively seeking the $6.7 billion Saudi facility at 1% interest rate for a period of 15 years. The matter has been discussed at the ministerial level, they added. Pakistan has sought a five-year grace period and a total 15 years for the repayments of the debt, they added.

"The matter is under consideration between the two governments," said the spokeswoman of the Ministry of Economic Affairs. She was responding to the question whether Pakistan had requested the Saudi Fund for Development (SFD) for a $6.7 billion oil facility at 1% interest rate with repayment in 15 years.

 

[Ali_Baba]

$6.7b oil facility sought from Saudi​

15-year loan at 1% interest from SFD; total Saudi cash deposits up to $8b

Pakistan has sought a $6.7 billion concessional oil financing facility from Saudi Arabia for a period of 15 years, aimed at ensuring energy security amid heightened Middle East conflict that may keep global prices high and put additional stress on the country's foreign exchange reserves.

A spokeswoman of the Ministry of Economic Affairs confirmed to The Express Tribune that the matter of Saudi oil facility on deferred payments was under discussion.

The sources said Pakistan was actively seeking the $6.7 billion Saudi facility at 1% interest rate for a period of 15 years. The matter has been discussed at the ministerial level, they added. Pakistan has sought a five-year grace period and a total 15 years for the repayments of the debt, they added.

"The matter is under consideration between the two governments," said the spokeswoman of the Ministry of Economic Affairs. She was responding to the question whether Pakistan had requested the Saudi Fund for Development (SFD) for a $6.7 billion oil facility at 1% interest rate with repayment in 15 years.

The more things change, the more they stay the same it seems. More loans, more cheap loans, more grace periods on payment of loans.. More requests for forgiveness of previous loans, more requests for loans to become aid ...

 

[HAIDER]

The more things change, the more they stay the same it seems. More loans, more cheap loans, more grace periods on payment of loans.. More requests for forgiveness of previous loans, more requests for loans to become aid ...

Our exports is nearly zero due to cost of production. In such situation country can only survive on long term and short term loans.
Our biggest issue is elite class massive corruption. Imagine the govt buying them 9 crore Mercedes , Mariam Nawaz ordered 4 Mercedes of 1 billion rupees , 11 billion dollar luxury plane , same COAS bought billions of dollar luxury planes. massive hicks in Judges salaries, free electricity, 300 gallon of free petrol for govt employee, air condition office, when people suicide for 40 thousand rupee electric bill.

 

[Mohid Afzal]

The more things change, the more they stay the same

I have this intense urge to put Shepherd's face here

 

[K2RULEZ]

The more things change, the more they stay the same it seems. More loans, more cheap loans, more grace periods on payment of loans.. More requests for forgiveness of previous loans, more requests for loans to become aid ...

Once an addict always an addict.

 

[K2RULEZ]

Our exports is nearly zero due to cost of production. In such situation country can only survive on long term and short term loans.
Our biggest issue is elite class massive corruption. Imagine the govt buying them 9 crore Mercedes , Mariam Nawaz ordered 4 Mercedes of 1 billion rupees , 11 billion dollar luxury plane , same COAS bought billions of dollar luxury planes. massive hicks in Judges salaries, free electricity, 300 gallon of free petrol for govt employee, air condition office, when people suicide for 40 thousand rupee electric bill.

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It has become painfully clear over the years. These scumbags use aid money and loans for their own use. Everyone is involved. Absolutely everyone from top to bottom. Had these billions been used on the development of Pakistan...

 

[Owaiz]

The other thing to keep in mind is what the effective financial cost of this facility is, apart from the unquantifiable strategic one. 1% interest rate sounds great, but when you are locked into an exclusive supply agreement, you lose leverage on price. The opportunity cost of not being able to buy cheaper oil from non-Saudi suppliers, which is indeterminate at present, can increase the effective financial cost.

 

[atmi_bum]

There can be no FDI until there's DDI. Wealthy Pakistanis are investing their money elsewhere, but not in Pakistan.

 

[GatlingGunZ]

Well well well.
No bonus points for guessing what services be extracted by S.A. in exchange of that.