Oil against deferred payments: Pakistani team holds talks with Saudi authorities

A top-level official delegation, headed by Petroleum and Foreign Minister, Shah Mahmood Qureshi, has air-dashed to Saudi Arabia to negotiate modalities with the Saudi authorities for a 5 to 6 billion dollar oil facility against deferred payments. The facility would be available to Pakistan for three years.
Pakistan's delegation comprised, Shah Mahmood Qureshi, Secretary Finance Furrukh Qayyum, Acting Secretary Petroleum G.A Sabri, Additional Secretary Finance, Asif Bajwa. Pakistan ambassador to Saudi Arabia is also accompanying the delegation for talks with Saudi authorities.
The Pak delegation held the first round of talks on Tuesday and will be back in Islamabad on August 28 or 29. Pakistan considers the oil facility from Saudi Arabia as a special support to help pull its ailing economy out from a bad patch.
Sources said the Saudi authorities had invited Pakistani officials last week for finalising modalities for the oil facility. Saudi government had hinted at giving Pakistan the oil facility for three to four years against deferred payments during Prime Minister, Syed Yusuf Raza Gilani's visit to Saudi Arabia in June last.
He was also accompanied with PPP co-chairman, Asif Ali Zardari. Pakistan's leadership had informed Saudi King and other leadership that Pakistan badly needs support in the form of oil facility to release pressure on its economy due to rising prices of petroleum products Pakistan's oil import bill had crossed a all-time high level of $11 billion in 2007-08. It resulted in severe pressure on its economy besides widening trade and current account deficit. Poor performance of all key sector of the economy forced the government to seek financial support from trusted friendly countries including Saudi Arabia, UAE China and USA.
Although it got positive response from majority of the country it selected for seeking support. However, it wanted a major support from Saudi Arabia in the form of oil facility. Saudi Arabia provides Pakistan 110,000 barrel crude oil per day. It is one of the major oil suppliers to Pakistan. It had given a facility of oil for 5 years soon after nuclear device detonation in 1998 and helped Pakistan come out of huge pressure due to various sanctions.