Official says Pakistan to get Saudi oil on credit as of July

US dollars are counted at a currency exchange in Islamabad, Pakistan, Friday, May 17, 2019. The value of the US dollar against the rupee touched another all-time high for the second consecutive day, reaching approximately Rs148 in the interbank market during trading before closing at Rs147.10. (AP Photo/B.K. Bangash)

ISLAMABAD (AP) — A Pakistani official says the much-anticipated Saudi oil will start flowing to Islamabad as of July, with payments deferred for three years.

Abdul Hafeez Shaikh says the buy-now-pay-later deal with the kingdom, reached last October, will enable this cash-strapped Islamic nation to overcome a balance of payment crisis. Shaikh is Prime Minister Imran Khan's adviser on finance and economic affairs,

Shaikh took to Twitter on Wednesday night, thanking Saudi Crown Prince Mohammed bin Salman for "activating the deferred payment for petroleum products" of $275 million per month. The value amounts to $3.2 billion per year.

The crown prince visited Pakistan in February.

Saudi Arabia is a leading supplier of oil to Pakistan, which earlier this month reached a preliminary agreement with the International Monetary Fund on a $6 billion bailout.