Pakistan has decided to approach Saudi Arabia for a 1998-like special treatment to import oil on deferred payments to offset pressures on its economy.
A Ministry of Foreign Affairs letter, dated March 27, 2008, addressed to the Ministry of Finance (MoF), Ministry of Petroleum and Economic Affairs Division (EAD), indicated that Pakistan is going to take up the matter with Saudi Arabia during an upcoming visit for securing a special arrangement for oil import on deferred payments in the near future.
Through the letter, the Ministry of Foreign Affairs has informed the Ministry of Petroleum and Ministry of Finance that the matter of import of oil from Saudi Arabia on deferred payments is likely to be taken up during a high official visit in the near future.
The visit is indicative of Prime Minister Yusuf Raza Gilani''s visit to Saudi Arabia. The Prime Minister was supposed to visit Saudi Arabia for performing umra soon after assuming the office of the Chief Executive of the country, but political uncertainty forced him to stay most of the time in the country. However, he is expected to visit Saudi Arabia to perform umra and hold bilateral talks, including oil import with Saudi rulers.
The Foreign Affairs Ministry''s letter also has the details of oil Pakistan got from Saudi Arabia under a special arrangement of deferred payments from July 1998 to December 2004. This was the period when Pakistan was facing hard time on economic front due to the economic sanctions imposed by the US and other major trade partners depriving Islamabad of any kind of grants or soft loans.
Pakistan then had approached to Saudi Arabia for providing it oil against deferred payments in June 1998.It positively responded to Pakistan''s call and provided it oil worth $3.3676 billion from July 1998 to December 2004.
The details showed that Saudi Arabia provided 30 million barrels oil of $375 million in 1998-1999, 33 million barrels of $785 million in 1999-2000, 25 million barrels costing 682 million in 2000-2001, 26 million barrels of $577 million in 2001-2002 , 24 million barrels of $644 million in 2003-04 and 10.77 million barrels costing 302 million in 2003-04.
Pakistan is again facing hard time and is looking desperately for financial support from friendly countries. China had already provided it $500 million on soft terms and conditions. Saudi Arabia had provided Pakistan $300 million for budgetary support in March this year. However, it''s is looking forward for support from Saudi Arabia in terms of oil import against deferred payments.
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