KSA begins oil supply on deferred payments to Pakistan

[Shahzaz ud din]

KSA begins oil supply on deferred payments to Pakistan
By
News Desk
-
July 1, 2019
0
15

Pakistan will start receiving the promised deferred payment facility on petroleum imports from Saudi Arabia from this month, a press statement issued by the Saudi embassy said on Monday.

According to Radio Pakistan, Pakistan will receive oil products worth $275 million every month for the next three years.

Last year, Riyadh had agreed to provide a bailout package worth $6 billion to help resuscitate Pakistan’s worsening economy.

Under the agreement, $3 billion 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.

The oil on credit will help stabilize Pakistani currency in exchange rate with the dollar, experts said, adding that owing to the recent hike in oil prices, the import bill of Pakistan has increased to extraordinary proportions.

It is pertinent to mention that Pakistan is an oil importing country and meets its energy needs through imported oil. The country has imported oil worth $10 billion in the ongoing financial year so far.

 

[VCheng]

Pakistan will receive oil products worth $275 million every month for the next three years.

275 x 36 = 9,900

A deferred payment facility for the import of oil worth up to another $3 billion was also part of the package.

But 9,900 >> 3,000.

The figures must be off somehow.

 

[MIRauf]

Nothing is for free HkanBaba2, everything has its price. Hopefully current Gov't will work to sort out exports and earn much needed $ to make actual payments. Pak needs to setup Call Centers and work with EU, China and US on IT and Software development. Another thing to work on is setting up Call Centers for tutors, couple of $ an hour to provide Math, Science etc tutoring for school age students.

 

[ZAC1]

will the petrol prices will go down bcz of this

 

[Abdussamad]

will the petrol prices will go down bcz of this

They didn't increase them as they should have recently. They will continue the same old policy of borrowing dollars from foreign tax payers to subsidize Pakistani's consumption of imported commodities. Then they will seek an IMF bailout in order to repay these borrowed dollars and the interest on them.

 

[AZADPAKISTAN2009]

The oil bill alone is 20 billion impact on Pakistani Economy so any differed payment means massive stability for Pakistani Economy

 

[BATMAN]

Differed until the next govt.
I have never seen a munafiq as big as Imran Khan.
It's a daily business that one of his munafiqat unfolds to public arena.

 

[Rasengan]

Differed until the next govt.
I have never seen a munafiq as big as Imran Khan.
It's a daily business that one of his munafiqat unfolds to public arena.

Such a term shouldn't be used so casually. I don't even support Imran Khan but as the Prime Minister of Pakistan, he deserves some respect. Pakistan is improving under his watch although it needs to be done much faster.

 

[VCheng]

The oil bill alone is 20 billion impact on Pakistani Economy so any differed payment means massive stability for Pakistani Economy

There can be no enduring economic stability on deferred payments. This is just another type of loan as a temporary measure to be repaid in the future. What happens then?

 

[BATMAN]

Such a term shouldn't be used so casually. I don't even support Imran Khan but as the Prime Minister of Pakistan, he deserves some respect. Pakistan is improving under his watch although it needs to be done much faster.

Please tell me in which are Pakistan is improving?

 

[Pandora]

Differed until the next govt.
I have never seen a munafiq as big as Imran Khan.
It's a daily business that one of his munafiqat unfolds to public arena.

Tu wo BC Nawaz sharief munafiq nae tha jo first year mein $9 billion ki debt payements choar kay chala gaya. Zardari harami munafiq nae tha jisnay almost 6 billion nawaz sharief kay liye choar diyay. Abi dollar hai nae hai account mein tu kya tum apni pocket say do gay oil ki payments? 9 billion first year mein debt repay kar diya hai tu khotay ka ser bacha hai oil ki payments kay liye? Munafiq IK nae balkay tum jaisay loag hein jo har chese ka pata hotay huay bi bewajah bakwas kartay ho har aglay din. Next year almost 10 billion ki debt payments karni hain wo kya tum nay aa kar dainay hein agar oil ki payments defer na karein. Just comprehend this for a sec almost 20$ billion dollar payments need to be made in first two years of government who inherited economy with a massive account deficit. Ab kaho yay 20 billion bi IK ki sazish say nawaz choar gaya tha.

 

[Rasengan]

Please tell me in which are Pakistan is improving?

Tourism from abroad is increasing. Some of the biggest travel vloggers have visited Pakistan under his tenure and he took the time to meet them. Furthermore, many of our industries such as the railway sector have increased their revenue. This is a sign of good governance. Pakistan's economic woes aren't related to this Govt's policies and actions. Therefore, the money Pakistan recieved as a bailout package from other countries show what confidence they have in him. Does this mean everything is great? No.

 

[Yaseen1]

due to bad economic policy if it continues govt may lose this opportunity to increase economic growth by providing fuel at very low cost to industries so in 3yrs period exports may increase and become competitive and govt raise high tax to build dams to generate cheap electricity for future period and be able to pay back this loan

 

[ThinkLogically]

This deferred payment is in dollars. If PKR value goes down then Pak will be in a big problem when the time for repayment comes.

 

[BATMAN]

This deferred payment is in dollars. If PKR value goes down then Pak will be in a big problem when the time for repayment comes.

Who cares about PAK here? It's all about gaining power and authority!