Saudi Arabia, Kuwait reject Pak's request to supply oil on long-term credit

Islamabad, Jan 9(ANI): Saudi Arabia and Kuwait have rejected Pakistan's request to supply oil on long-term credit.

"Saudi Arabia has turned down Pakistan's request on grounds that since it exports oil to other countries, they may demand similar treatment," The Express Tribune quoted a source, as saying.

Saudi authorities said that oil export is their commercial business and they would offer oil to Pakistan under the same terms that are offered to other countries, sources added.

The move comes in the wake of Pakistan's public sector oil marketing company Pakistan State Oil (PSO) battling huge debt.

"The situation has been aggravated due to nonpayment of dues by power sector and some other clients; PSO's receivables have piled up to Rs185.2 billion," sources added.

Pakistan Prime Minister Yousuf Raza Gilani had earlier requested Saudi King Abdullah bin Abdulaziz to either restore the 'free oil facility' or extend the credit term for oil payment from the existing 30 days to one-year.

Saudi Arabia had granted a 'free-oil' facility to Pakistan after the latter conducted nuclear tests in 1998.

Pakistan President Asif Ali Zardari had also requested Kuwait to extend the deferred payment period from two months to six months during his visit to the country during May 2011.

Kuwait is the only country that has supplied oil to Pakistan on a two-month deferred payment arrangement since 2008.

Iran had been supplying 45,000 barrels of crude oil to Pakistan on a three-month deferred payment plan until January 2011 till the United Nations sanctions stalled the plan.(ANI)