Pakistan, Saudi Arabia sign $1 billion oil agreement

Pakistan and Saudi Arabia have signed an agreement worth $1 billion in the oil sector.

The agreement was signed in Islamabad by Saudi Fund for Development (SFD) Chief Executive Officer Sultan Abdulrahman Al-Marshad and Pakistan's Ministry of Economic Affairs Secretary Dr Kazim Niaz on January 12, Geo News website reported, citing an official statement.

Pakistan will receive $1 billion worth of oil from Saudi on deferred payment under the agreement.

Earlier this week, Saudi Arabia was considering boosting investments in Pakistan to $10bn and increasing its deposit in Pakistan's central bank to $5 billion from $3 billion.

Last month, the Saudi fund extended its term for the $3 billion deposit in the State Bank of Pakistan (SBP) that was set to mature on 5 December.