By Abdul Ghani

Saudi Arabia’s oil facility provided $800 million in financial support to Pakistan during the first eight months of the current fiscal year (FY26), underscoring its role in supporting the country’s energy imports, according to official data.

The Ministry of Economic Affairs’ latest report shows that disbursements under the Saudi Fund for Development (SFD) oil facility reached $800 million during July–February FY26. This includes $700 million disbursed during July–January and an additional $100 million in February alone.

The facility is designed to finance Pakistan’s imports of crude oil and petroleum products on deferred payment terms, easing immediate pressure on foreign exchange reserves. The inflows fall under non-project financing and form a key component of external support for energy-related payments.

Data indicate that the Saudi oil facility constitutes one of the largest single financing arrangements within Pakistan’s external inflows during the period. The scale of disbursement highlights its importance in meeting the country’s ongoing energy requirements.

The report shows that the facility operates separately from project-based financing and is categorised under programme and budgetary support mechanisms. This distinguishes it from development-related inflows directed towards infrastructure and social sector projects.

In addition to Saudi financing, Pakistan also received short-term financing for oil and LNG imports through the Islamic Development Bank’s trade facility. Disbursements under these arrangements further contributed to overall non-project inflows during the period.

The data reflect that energy import financing remains a significant component of Pakistan’s external assistance, with dedicated facilities in place to support fuel procurement. These arrangements are structured to ensure continuity in energy supplies while managing external payment obligations.

Overall, the disbursement of $800 million under the Saudi oil facility during the first eight months of FY26 highlights its central role in supporting Pakistan’s energy import requirements and external financing framework.

Credit: INP-WealthPk