Saudi Arabia Replugs Oil Supply to Pakistan
Pakistan had a loan of $3 billion to repay to Saudi Arabia which it failed to clear last year, leading to the end of supply of oil to the country
In the latest development pertaining oil aid facility dispute, the Kingdom of Saudi Arabia (KSA) has agreed to resume the annual oil supply worth nearly $1.5 billion to Pakistan from July after a year.
Addressing the news conference, Federal Energy Minister Hammad Azhar announced the development in a presser yesterday.
The decision has allegedly been made to curb Iranian influence in the Riyadh region.
Last year, Pakistan had a loan of $3 billion to repay to Saudi Arabia which it failed to clear last year, leading to the end of supply of oil to the country.
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Further deterioration in relations between two allies heightened when Islamabad criticized that Riyadh-dominated Organization of Islamic Cooperation (OIC) is not doing enough on the Kashmir issue.
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Further, the outbreak of the coronavirus pandemic that crippled many economies including the developing world gave Pakistan an edge after a thaw in relations to some extent.
Sources have claimed that KSA is secretly making efforts along with the United States and Qatar to build a front against Iran. In this regard, they had lifted a three-year blockade of Qatar in January.
On the other hand, Pakistan is joining hands with Turkey – a regional rival of the KSA, to create an Islamist bloc to rival the Saudi-led OIC.
Last month, Prime Minister (PM) Imran Khan visited the KSA and met the Saudi Crown Prince Mohammed bin Salman to resolve the tensions between the two countries.
While sharing views on the current situation of the two countries, Khan tried to reset the friendly relations and emphasized resuming oil aid facilities to Pakistan as the top priority.
Moreover, the meeting concluded that the Saudis might resume their investment plans in Pakistan.
