Feb 4, 2026
Web desk
Pakistan has requested Saudi Arabia to extend the deferred oil payment facility from one year to two years. The move aims to ease pressure on the country’s external payments and foreign exchange outflows.
Sources say talks are underway between Pakistan’s economic team and Saudi authorities regarding the extension. Officials believe the facility will help manage the balance of payments situation.
The current agreement is set to expire in March 2026, while the $1.2 billion deferred oil facility completes its tenure this month. Pakistan will be required to start repayments from March 2026 under the existing terms.
If the agreement is extended to two years, it will make repayments easier for Pakistan. In case of a fresh deal, the facility could remain in place until February 2027, sources added.
