Saudi Arabia to extend $15-bn bailout package to Pakistan

Saudi Arabia is expected to extend a whopping USD 15-billion bailout package to Pakistan’s highly indebted energy sector, including the supply of crude and furnace oil on deferred payment, according to a media report on Thursday.

The Saudis are taking ‘reasonable interest in helping out’ the incoming PML-N government led by Nawaz Sharif, an unnamed senior government official was quoted as saying by the Dawn newspaper.

The bailout package will enable Pakistan to resolve the chronic circular debt in the energy sector. 

Saudi Arabia had extended a similar package to Pakistan soon after it went nuclear in 1998 and faced international economic sanctions.

During 1998-2002, Pakistan received oil worth USD 3.5 billion (Rs 190 billion at the exchange rate of that time) from Saudi Arabia on deferred payment, and a major part of the amount was converted into a grant.

At that time, a PML-N government led by Nawaz Sharif was in power.