ISLAMABAD: Pakistan has signed a significant agreement with the Saudi Fund for Development (SFD), enabling the country to import Saudi oil on deferred payment for one year, amounting to $1.2 billion. This deal was formalized in a ceremony on Monday, with the participation of a delegation led by SFD CEO Sultan Bin Abdul Rehman Al Marshad, who met Prime Minister Shehbaz Sharif in Islamabad.
During the meeting, Prime Minister Sharif witnessed the signing of two important agreements: the Oil Import Financing Facility and a loan agreement for the Gravity Flow Water Supply Scheme in Mansehra, Khyber Pakhtunkhwa, as per a statement from the Prime Minister’s Office (PMO).
The $1.2 billion deal will enable Pakistan to import vital petroleum products while easing immediate fiscal pressures, thereby supporting the country’s economic resilience.
In addition, the Saudi Fund will contribute $41 million for the Gravity Flow Water Supply Scheme in Mansehra, which will provide access to clean drinking water for around 150,000 local residents, improving public health and quality of life.
Prime Minister Shehbaz Sharif expressed his gratitude to the SFD for its continued support across sectors like health, energy, infrastructure, and education. He also commended the Fund’s contributions to rebuilding flood-affected areas of Pakistan in 2022.
On the occasion, SFD CEO Sultan Bin Abdul Rehman Al Marshad briefed PM Sharif on ongoing projects funded by Saudi grants, including the Mohmand Multi-purpose Hydropower Project and the Malakand Regional Development Project. Both leaders also emphasized the need to fast-track the processing of new green energy and infrastructure projects to further Pakistan’s economic recovery and address local community needs.
In a separate meeting with Pakistan’s Finance Minister Muhammad Aurangzeb, Al Marshad discussed various aspects of the bilateral economic relationship. Aurangzeb highlighted Pakistan’s improving macroeconomic indicators and the importance of continued Saudi investment and support for the country’s growth.
The two leaders also spoke about the upcoming IMF-Saudi Arabia conference on emerging market economies, which will be held in Saudi Arabia on February 16-17, 2025. The conference is expected to offer valuable insights for strengthening Pakistan’s economic ties with the Kingdom.
Al Marshad also acknowledged the contributions of Pakistani workers in Saudi Arabia, noting that Pakistan’s skilled workforce could help meet the growing demands of the Saudi labor market. He proposed collaboration on training programs to equip young Pakistanis with skills relevant to Saudi Arabia’s evolving job market.
This agreement highlights the strong and growing economic ties between Pakistan and Saudi Arabia, with a focus on energy, infrastructure, workforce development, and mutual investment opportunities.
