Pakistan has formally requested the Saudi Fund for Development to delay oil import payments for another year. Officials say this step is meant to reduce stress on the country’s balance of payments at a critical time.

Saudi Arabia is Pakistan’s main source of petroleum imports. Oil purchases make up a large share of the import bill, and delayed payments help Pakistan save dollars and protect foreign exchange reserves.

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Sources say the current deferred oil payment agreement will end in March 2026. Talks between Pakistan’s economic team and Saudi authorities are already in progress to renew the deal.

If both sides reach an agreement, the facility could continue until February 2027. Officials believe this extension would offer much-needed breathing space to the economy.

Meanwhile, Pakistan has also received short-term relief from the United Arab Emirates. The UAE has extended the rollover of a $2 billion loan for one more month, according to sources.

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Pakistan has again requested the UAE to roll over a total of $3bn for a longer period. The $2 billion loan matured last month, while another $1 billion tranche is due in July.

Under the International Monetary Fund program, Pakistan must secure rollovers of $12 billion in external loans during the current financial year, making these extensions crucial.