SFD, Pakistan ink pacts worth $1.61b

F.P. Report

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday witnessed the signing of two agreements between Pakistan and the Saudi Fund for Development (SFD) worth $1.61 billion, further strengthening the bilateral economic cooperation between the two brotherly countries.

The significant agreements pertained to deferred payment for oil import from the Kingdom of Saudi Arabia worth $1.20 billion for one year and the concessional loan agreement for the construction of a gravity-flow water scheme at Mansehra amounting to $41 million. 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 also attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, federal ministers, Ambassador of the Kingdom of Saudi Arabia in Pakistan Nawaf bin Said Al-Malki and relevant authorities. The prime minister welcomed the signing of Oil Import Financing Facility according to which Pakistan will receive oil on deferred payment for one year amounting to US $ 1.20 billion.

This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal burdens. SFD will provide an amount of US$ 41 million for the Gravity Flow Water Supply Scheme at Mansehra, Khyber Pakhtunkhwa shall enhance access to clean drinking water for 150,000 local people of Mansehra (and will be sufficient to meet the demand by 2040 by providing water to 201,249 people) improving overall public health and quality of life.

Pakistan and Saudi Arabia also signed an agreement for deferred payment for oil import from Saudi Arabia to Pakistan worth $1.2 billion for one year. Prime Minister Muhammad Shehbaz Sharif and Chief Executive Officer of Saudi Fund for Development (SFD) Sultan Abdulrahman Al-Marshad witnessed the signing of agreement.

The prime minister welcomed the signing of Oil Import Financing Facility according to which Pakistan will receive the oil on deferred payment. This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal burdens.

The other agreement pertained to a concessional loan agreement for the construction of a gravity-flow water scheme at Mansehra amounting to $41 million. SFD will provide an amount of US$ 41 million for the Gravity Flow Water Supply Scheme at Mansehra, Khyber Pakhtunkhwa which shall enhance access to clean drinking water for 150,000 local people of Mansehra (and will be sufficient to meet the demand by 2040 by providing water to 201,249 people) improving overall public health and quality of life.

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

Meanwhile, the delegation of Saudi Fund for Development (SFD), led by Sultan Bin Abdul Rehman Al Marshad, Chief Executive Officer (CEO) called on Prime Minister Muhammad Shahbaz Sharif. The prime minister welcomed the delegation and appreciated the long-standing friendship between the Kingdom of Saudi Arabia and Pakistan and the efforts of SFD for providing financing to Pakistan in the fields of health, energy, infrastructure and education as well the for the reconstruction after the 2022 floods, PM Office Media Wing said in a press release.