Pakistan and SFD Sign $1.61 Billion Agreements to Strengthen Economic Ties
On Monday, Prime Minister Shehbaz Sharif and Sultan Abdulrahman Al-Marshad, the CEO of the Saudi Fund for Development (SFD), oversaw the signing of two major agreements between Pakistan and SFD, totaling $1.61 billion. These agreements are designed to further enhance the economic cooperation between the two countries.
The first agreement is a $1.20 billion deferred payment facility for oil imports from Saudi Arabia. Under this arrangement, Pakistan will receive oil over the next year and pay for it on deferred terms. The second agreement is a concessional loan of $41 million for the construction of a gravity-flow water scheme in Mansehra, Khyber Pakhtunkhwa, aimed at improving water supply in the region.
Dr. Kazim Niaz, Secretary of the Economic Affairs Division, and Sultan Abdulrahman Al-Marshad, CEO of SFD, signed the agreements on behalf of their respective governments.
The signing ceremony was attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, along with other federal ministers and the Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki.
Prime Minister Shehbaz Sharif welcomed the Oil Import Financing Facility, noting that it would provide Pakistan with a stable supply of petroleum while easing fiscal pressures. He stressed that the agreement would strengthen the countryβs economic resilience.
The second agreement will see the SFD provide $41 million to improve access to clean drinking water in Mansehra, benefiting approximately 150,000 people. The gravity-flow water supply scheme is expected to meet the region’s water demand until 2040, ultimately benefiting over 200,000 residents and improving public health.
These agreements are a significant step in fostering stronger economic relations between Pakistan and Saudi Arabia, aiming to address critical infrastructure needs and bolster the country’s economic stability.
