Islamabad (Web Desk): Prime Minister Shehbaz Sharif and Chief Executive Officer of Saudi Fund for Development (SFD) Sultan Abdulrahman Al-Marshad on Monday witnessed the signing of two important agreements between Pakistan and Saudi Arabia, valued at $1.61 billion.
These agreements are poised to strengthen the economic partnership between the two nations. One of the key deals involves a $1.20 billion arrangement for deferred oil payments, allowing Pakistan to import oil from Saudi Arabia for a year without immediate financial strain.
This move is expected to alleviate some of Pakistan’s fiscal challenges by ensuring a steady supply of petroleum products.
The second agreement focuses on a concessional loan of $41 million from SFD for the development of a gravity-flow water supply system in Mansehra, Khyber Pakhtunkhwa.
This initiative aims to provide clean drinking water to approximately 150,000 people, with the infrastructure designed to meet the area’s needs up to 2040. The project promises to improve public health and enhance the quality of life for the local population.
The agreements were formalized by Dr. Kazim Niaz, the Secretary of the Economic Affairs Division, and Sultan Bin Abdul Rehman Al Marshad, on behalf of their respective governments.
The signing ceremony was attended by several key figures, including Deputy Prime Minister Mohammad Ishaq Dar, federal ministers, and the Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki. These developments signal a deepening collaboration between Pakistan and Saudi Arabia, with both nations focused on addressing critical issues such as energy security and access to basic utilities.
Separately, high-level delegation of SFD led by its CEO Sultan Bin Abdul Rehman Al Marshad, met with Prime Minister Shehbaz Sharif in Islamabad today.
During the meeting, Prime Minister Sharif warmly welcomed the delegation and emphasized the deep-rooted bond between Saudi Arabia and Pakistan.
He expressed his gratitude for the Saudi Fund's ongoing support in financing critical sectors like health, energy, education, and infrastructure, especially in the aftermath of the 2022 floods.
The CEO of the Saudi Fund for Development acknowledged the warm hospitality extended by the Pakistani government and provided updates on various ongoing projects supported by the Fund.
These include hydropower initiatives like the Mohmand and Golan Gol projects, as well as regional development efforts in Malakand. He assured the Prime Minister that these projects would be completed efficiently, with a focus on advancing Pakistan’s development and meeting the needs of local communities.
Prime Minister Sharif emphasized the importance of accelerating green energy and infrastructure projects that could boost Pakistan’s economic recovery. He noted that the swift implementation of such initiatives would not only create economic opportunities but also address pressing local needs.
The CEO reiterated Saudi Arabia’s ongoing commitment to supporting Pakistan’s development and assured the Prime Minister of continued assistance under the leadership of the Saudi Royal Family.
Welcoming the delegation, the premier expressed his gratitude to the Saudi leadership, particularly to King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman.
PM Shehbaz also welcomed the signing of a new agreement that will allow Pakistan to import oil on deferred payments for one year, valued at 1.2 billion dollars.
This arrangement is expected to ease Pakistan’s immediate financial challenges by securing a stable supply of petroleum products.
The Saudi Fund for Development also pledged to allocate 41 million dollars to the Gravity Flow Water Supply Scheme in Mansehra, a project designed to provide clean drinking water to 150,000 people in the region.
This initiative will not only meet current demands but will also ensure sufficient water for the growing population of the area until 2040.