Pakistan, Saudi Fund sign $1.61bn agreements

February 04, 2025 (MLN): Pakistan and the Saudi Fund for Development (SFD) have signed two agreements worth $1.61 billion, witnessed by Prime Minister Muhammad Shehbaz Sharif, further enhancing bilateral economic cooperation between the two countries.

The key agreements included a $1.20bn deferred payment arrangement for oil imports from Saudi Arabia for one year and a concessional loan of $41 million for the construction of a gravity-flow water scheme in Mansehra.

Secretary Economic Affairs Division Dr. Kazim Niaz and CEO SFD Sultan Bin Abdul Rehman 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, the Ambassador of the Kingdom of Saudi Arabia to Pakistan, Nawaf bin Said Al-Malki, and other relevant authorities.

The Prime Minister commended the signing of the Oil Import Financing Facility, under which Pakistan will receive oil on deferred payment for one year, totaling US $1.20bn.

This project will enhance Pakistan's economic resilience by securing a stable supply of petroleum products and alleviating immediate fiscal pressures, according to the press release.

The Saudi Fund for Development (SFD) will allocate $41mn for the Gravity Flow Water Supply Scheme in Mansehra, Khyber Pakhtunkhwa, which will provide clean drinking water to 150,000 local residents.

By 2040, the project is expected to meet the projected water demand for 201,249 people, thereby enhancing public health and overall quality of life.

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