Pakistan, Saudi Arabia Ink $1.61bn Agreements
Pakistan and Saudi Arabia have signed an MoU (Memorandum of Understanding) on the Oil Import Financing Facility, under which Pakistan will receive US$1.20 billion in deferred oil for one year.
According to official media, a delegation of the Saudi Fund for Development (SFD) led by Sultan bin Abdul Rahman Al-Murshid, Chief Executive Officer (CEO), called on Prime Minister Muhammad Shehbaz Sharif today. The Prime Minister welcomed the delegation
and, citing the long-standing friendship between Saudi Arabia and Pakistan, appreciated the efforts of SFD to provide financial assistance to Pakistan in the sectors of health, energy, infrastructure and education, as well as for reconstruction after the devastating floods of 2022.
The SFD Chief Executive thanked the Prime Minister and the Government of Pakistan for the warm welcome and hospitality extended to the Saudi delegation. CEO, SFD briefed the Prime Minister on the progress of ongoing projects including Mohmand Hydropower Project, Golan Gol Hydropower Project, Malakand Regional Development Project, and other projects funded by Saudi grants.
The Prime Minister, while appreciating the support of SFD, highlighted the need to accelerate the pace of new projects partnered with SFD in the green energy and infrastructure sectors, which would help ensure sustainable development of Pakistan.
The SFD Chief Executive assured early action on the joint projects and also reiterated that Saudi Arabia, under the leadership of the Royal Family, will provide all possible assistance and continued support to Pakistan.
The Prime Minister thanked the CEO and members of the delegation and expressed his best wishes to all members of the Royal Family, especially the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and Crown Prince and Prime Minister Muhammad bin Salman.
Deputy Prime Minister Ishaq Dar, Minister for Economic Affairs Division Ahad Khan Cheema, Minister for Finance Muhammad Aurangzeb, Minister for Information and Broadcasting Attaullah Tarar, Minister for Petroleum Dr. Mosaddiq Malik and Special Assistant to the Prime Minister Tariq Fatemi were present along with senior officials of the Government of Pakistan. Saudi Ambassador to Pakistan His Excellency Nawaf bin Saeed Al-Maliki was also part of the four-member Saudi delegation.
After the meeting, the Prime Minister attended the signing ceremony of the Oil Import Financing Facility and Gravity Flow Water Supply Scheme agreements in Mansehra, Khyber Pakhtunkhwa.
Secretary Economic Affairs Division Dr. Kazim Niaz and CEO, SFD, Sultan bin Abdul Rehman Al-Murshid signed the agreements on behalf of their respective governments.
The Prime Minister welcomed the signing of the Oil Import Financing Facility, under which Pakistan will receive US$ 1.20 billion of oil on deferred payment for one year.
This scheme will strengthen Pakistan’s economic resilience by ensuring stable supply of petroleum products while reducing the immediate financial burden.
SFD will provide US$41 million for a gravity flow water supply scheme in Mansehra, Khyber Pakhtunkhwa,
which will increase access to clean drinking water for 150,000 local people of Mansehra and will be sufficient to meet the water demand of 201,249 people by 2040.
