THE Kingdom of Saudi Arabia is a tried and tested friend of Pakistan, and both countries have a history of warm relations. Sentiments of brotherhood are rooted in culture, shared values and common faith. Pakistan holds Saudi Arabia in high esteem. It is no surprise then to see Pakistan Prime Minister Syed Yousuf Raza Gilani arrive here on his first visit abroad after assuming the office. The fact that Co-Chairman of Pakistan People's Party (PPP) Asif Ali Zardari and a delegation of ministers and senior officials are accompanying him makes the visit a crucial one. Pakistan imports around 250,000 barrels of oil per day from Saudi Arabia and has been affected by the sharply increasing international prices, raising its oil bill by over 40 percent in around 10 months compared to last year. Pakistan's economy is under pressure from the surging oil prices. In this backdrop, a request for special oil facility is said to be part of Gilani's agenda. Saudi Arabia is reported to have said that it would consider the request. Saudi Arabia has offered one-year credit facility to Pakistan on oil payments, on the pattern of 1998 oil credit facility. Earlier, Saudi Arabia deferred oil payments when the United States imposed economic sanctions following Pakistan's nuclear tests in 1998. The Kingdom approved the continuation of an arrangement begun in 1998 for the delivery of free crude oil to Pakistan. The Saudi loans, estimated at $2 billion, were later turned into grants. Pakistani government is considering to give maximum relief to the people in the upcoming budget and wants to reduce the prices of edibles. It has decided to delay announcing its 2008/2009 budget until June 10, having earlier set a June 7 deadline. The main economic reason to delay the budget was to include external resources expected in terms of extension in the oil facility. Pakistan is seeking the similar agreements with Kuwait, Turkey, and Iran as well. The government plans to secure considerable support from the brotherly Islamic countries in the form of oil import on credit generally known as ‘deferred payment facility.,' International Monetary Funds (IMF) wants Pakistan to reduce oil subsidies in the upcoming 2008-09 fiscal year in order to cut its fiscal and current account deficits. IMF believes that lowering subsidies would encourage users to reduce oil and energy use, which will in turn reduce imports. Moreover, Pakistan is seeking $6 billion aid from Saudi Arabia in return for offering land for growing and exporting wheat. Pakistan has offered hundreds of thousands of acres of agricultural land, which could be cultivated by the Saudis. Saudis would be permitted to set up fertilizer plants in Pakistan to boost food production. Recently, the Indo-Saudi deal suffered the consequences brought about by the global food shortage. India is also affected by the food crisis like the other countries. It is one of the top rice producers and is supplying Saudi Arabia through a deal signed by both countries. But at present, India is forced to scuttle the deal with Saudi Arabia since, almost 1.1 billion Indians are also suffering from global food shortage. This is a good chance for Saudi Arabia as well to ease its need of food through this deal with Pakistan. Pakistan and Saudi Arabia can transcend the changing global environment, crises and expediency of international politics. They can further boost bilateral ties in all fields. The two sides can explore more avenues of cooperation to increase bilateral trade and investment to face the challenges of globalization and global crises. __
