The Government of Pakistan has formally requested a $6.7 billion concessional oil financing facility from the Kingdom of Saudi Arabia, aimed at ensuring energy security amid escalating Middle East conflict and volatile global oil prices . The proposed facility, sought from the Saudi Fund for Development (SFD), would be extended at a highly concessional interest rate of 1% over a 15-year repayment period, including a five-year grace period before repayments begin . A spokeswoman for Pakistan’s Ministry of Economic Affairs confirmed that the matter is currently under discussion between the two governments.
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The request comes as renewed hostilities between Iran and the United States have pushed Brent crude prices up by approximately $15 per barrel, significantly increasing energy and food security risks across the region . Government officials have indicated that a Saudi financing deal could offset part of the additional import burden if elevated oil prices persist . The International Monetary Fund (IMF) has not included such a facility in its projected inflows for Pakistan for FY2026-27 and FY2027-28, suggesting any agreement would provide unanticipated relief to the country’s external accounts .
