SFD and Pakistan Sign Agreements Worth $1.61 Billion to Boost Bilateral Economic Cooperation

Prime Minister Muhammad Shehbaz Sharif and the Chief Executive Officer of Saudi Fund for Development (SFD), Sultan Abdulrahman Al-Marshad, witnessed the signing of two major agreements between Pakistan and the SFD. These agreements, worth a total of $1.61 billion, are expected to further strengthen the economic ties between the two nations.

Key Highlights of the Agreements

1. Deferred Payment for Oil Imports: The first agreement is related to a $1.20 billion oil import financing facility. Under this agreement, Pakistan will receive oil from Saudi Arabia on deferred payments for a period of one year. This arrangement is aimed at ensuring a stable supply of petroleum products to Pakistan while also alleviating some of the immediate fiscal pressures faced by the country. The deferred payment will help Pakistan manage its energy needs without burdening the nation’s finances in the short term.
2. Concessional Loan for Gravity Flow Water Supply Scheme: The second agreement involves a $41 million concessional loan for the construction of a gravity-flow water supply scheme in Mansehra, located in Khyber Pakhtunkhwa. This project will provide clean drinking water to around 150,000 people in the region. The project aims to improve the overall public health and quality of life by supplying water to 201,249 people by 2040, meeting the future demand for water in the area.

Importance of the Agreements

• Economic Resilience: The Oil Import Financing Facility will provide Pakistan with the necessary support to meet its petroleum demands without incurring immediate financial strain. This will help strengthen Pakistan’s economic resilience by ensuring the continued availability of oil products at favorable terms.
• Improved Public Health: The gravity-flow water supply project will significantly enhance access to clean water, a crucial resource for improving public health and sanitation. It will benefit the local population of Mansehra and contribute to long-term sustainable development in the region.

Signatories and Attendees

• Secretary Economic Affairs Division, Dr. Kazim Niaz, and CEO SFD Sultan Bin Abdulrahman Al Marshad signed the agreements on behalf of their respective governments.
• The signing ceremony was attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, federal ministers, and the Ambassador of the Kingdom of Saudi Arabia in Pakistan, Nawaf bin Said Al-Malki, along with other relevant authorities.

Prime Minister’s Remarks

Prime Minister Shehbaz Sharif expressed his appreciation for the agreements, highlighting their role in boosting Pakistan’s economic stability and enhancing the quality of life for the people of Mansehra. He welcomed the SFD’s continued support and emphasized the importance of strengthening bilateral cooperation between Pakistan and Saudi Arabia.