Pakistan and Saudi Arabia Sign $1.61 Billion Agreements to Strengthen Economic Ties
Pakistan and the Saudi Fund for Development (SFD) signed two major agreements worth $1.61 billion on Monday, further enhancing economic cooperation between the two nations. The signing ceremony was attended by Prime Minister Shehbaz Sharif and SFD CEO Sultan Abdulrahman Al-Marshad.
The agreements include a $41 million concessional loan for the development of a gravity-flow water supply system in Mansehra and a one-year deferred payment arrangement for oil imports worth $1.20 billion from Saudi Arabia.
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The documents were signed by SFD CEO Sultan Bin Abdul Rehman Al-Marshad and Economic Affairs Division Secretary Dr. Kazim Niaz on behalf of their respective governments. The event was also attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers, Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki, and other officials.
Prime Minister Shehbaz Sharif welcomed the Oil Import Financing Facility, which will provide $1.20 billion worth of oil on deferred payment for a year, easing Pakistan’s immediate financial burden and ensuring a stable supply of petroleum products.
Additionally, the SFD’s $41 million contribution to the Gravity Flow Water Supply Scheme in Mansehra, Khyber Pakhtunkhwa, aims to enhance public health and quality of life. The project will provide clean drinking water to 150,000 residents and meet future demand by supplying 201,249 people by 2040.