Two agreements worth $1.61 billion were signed between Pakistan and the Saudi Fund for Development (SFD) on Monday, strengthening the economic cooperation between the two countries. Prime Minister Shehbaz Sharif and SFD CEO Sultan Abdulrahman Al-Marshad witnessed the signing.
The major agreements included a concessional loan arrangement for the development of a gravity-flow water infrastructure in Mansehra totaling $41 million, and a one-year deferred payment for oil imports from the Kingdom of Saudi Arabia valued at $1.20 billion.
The agreements were signed on behalf of their respective governments by SFD CEO Sultan Bin Abdul Rehman Al-Marshad and Economic Affairs Division Secretary Dr. Kazim Niaz.
Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers, the Kingdom of Saudi Arabia’s Ambassador in Pakistan Nawaf bin Said Al-Malki, and other officials also attended the signing ceremony.
The Prime Minister praised the signature of the Oil Import Financing Facility, which will provide Pakistan with $1.20 billion worth of oil on deferred payment for one year. This initiative will help alleviate immediate budgetary constraints and ensure a steady supply of petroleum products, enhancing Pakistan’s economic resilience.
The SFD will contribute $41 million to the Gravity Flow Water Supply Scheme in Mansehra, Khyber Pakhtunkhwa, which will improve the quality of life and public health by providing clean drinking water to 150,000 locals in Mansehra. It will meet the demand for water by 2040, benefiting a total of 201,249 people.
