ISLAMABAD: Pakistan has formally requested Saudi Arabia for a two-year extension of the Saudi Oil Facility (SOF) following the expiry of the existing $1.2 billion arrangement, official sources told The News on Tuesday.
According to senior officials, Islamabad has sought the extension to cover the remaining period of the ongoing International Monetary Fund (IMF) programme and is awaiting a formal response from Riyadh. The current SOF, under which Saudi Arabia provides oil on deferred payment terms amounting to $100 million per month, is set to expire next month.
While the Ministries of Petroleum and Finance declined to comment, sources confirmed that a request has already been conveyed to the Saudi authorities. If approved, the extension would allow Pakistan to avail another $1.2 billion in oil financing over the next year, with the facility potentially running until mid-2027.
An economic delegation from Pakistan is currently in Saudi Arabia, where discussions are also focusing on strengthening bilateral ties and attracting Saudi investment across multiple sectors under the Special Investment Facilitation Council (SIFC) framework.
Meanwhile, Pakistan’s economic managers are racing against time to secure the rollover of $2 billion in deposits placed by the United Arab Emirates with the State Bank of Pakistan. The original repayment deadlines for the two $1 billion tranches—January 17 and January 23, 2026—were extended by one month by the UAE.
Officials said Pakistan has now requested a one-year rollover until February 16, 2027. “We have approached the UAE and are optimistic that the matter will be resolved before the deadline,” a senior Finance Division official told The News, adding that negotiations are ongoing and a positive outcome is expected.
Failure to secure the rollover would require Pakistan to repay the full $2 billion within the current month, further tightening the country’s external financing position.
Story by Mehtab Haider
