Pakistan has formally asked Saudi Arabia to extend the Saudi Oil Facility (SOF) for another two years after the current $1.2 billion arrangement expires.
According to a report in a national daily, Islamabad has submitted a request to Riyadh to continue the facility until the end of Pakistan’s ongoing International Monetary Fund (IMF) program and is now waiting for an official response from Saudi authorities.
The existing oil facility is set to expire next month, prompting Pakistan to seek an extension well in advance.
Under the current arrangement, Saudi Arabia supplies oil to Pakistan on deferred payment terms of $100 million per month, easing pressure on Pakistan’s foreign exchange reserves. Monthly oil bills are settled under this facility.
At the same time, a senior Pakistani economic delegation is visiting Saudi Arabia, where talks are focused on strengthening bilateral relations and attracting Saudi investment in various sectors under the Special Investment Facilitation Council (SIFC) framework.
If the facility is renewed, Pakistan could receive another $1.2 billion in deferred oil support, with the arrangement potentially continuing until mid-2027.
Meanwhile, Pakistan’s economic team is also working to secure the rollover of $2 billion in deposits from the United Arab Emirates (UAE) held with the State Bank of Pakistan.
Only about 12 days remain before the extended deadline expires. The UAE had earlier granted a one-month extension after the original maturities of $1 billion on January 17 and another $1 billion on January 23, 2026. Islamabad has now formally requested a one-year rollover until February 16, 2027.
Failure to secure the rollover would require Pakistan to repay the $2 billion within the current month, adding further pressure on the country’s foreign exchange reserves.
