Pakistan signs a $1.2 billion oil deferred payment agreement with KSA.

Yesterday there was good news for Pakistan, which very few media covered: that Pakistan has signed an agreement with KSA for a US 1.2 billion deferred payment agreement. 

This is not the first time Pakistan has signed this agreement. Back in 2018, when former PM Imran Khan visited Saudi Arabia, it was the first time this deal was announced to help Pakistan secure an IMF deal, which required friendly countries' support to get financial assurance. 

Yesterday, PM Shahbaz Sharif and SFD Chief Executive Officer oversea the signing and congratulated each other. The agreement is signed for 1 year.

Why US 1.2 Billion dollar deferred payment is import? 

Pakistan is facing balance of payment crisis due to a lack of reforms and not focusing on exports and IT. Which is why Pakistan has to pay back external loans which were borrowed from others like countries, international donors, and banks. This will help Pakistan to pay for oil imports later, and Pakistan will be able to save dollars for other purposes, like paying for other goods or payment of debts.