Prime Minister Muhammad Shehbaz Sharif and CEO of the Saudi Foundation for Development (SFD), Sultan Abdulrahman al-Marshad, witnessed the signing of two essential agreements between Pakistan and SFD, valued at $ 1.61 billion.
The agreements were signed on Monday, which further strengthened bilateral economic cooperation between the two nations.
The agreements include a postponed payment facility for oil import from Saudi Arabia worth $ 1.20 billion to be paid over a year, and a concessional loan agreement to build a gravity water arrangement in the mansehra in Khyber Pakhtunkhwa, equivalent to $ 41 million .
The agreements were signed by Dr. Kazim Niaz, secretary of the Economic Affairs division, and Sultan Abdulrahman al-Marshad, CEO of SFD, on behalf of their respective governments.
The ceremony participated in Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, along with federal ministers and the Saudi ambassador to Pakistan, said Nawaf bin al-Malki.
Prime Minister Shehbaz Sharif expressed his approval of the oil import financing facility, which allows Pakistan to receive oil on deferred payments for a year. He emphasized that this Agreement will strengthen Pakistan’s financial resilience by ensuring a stable oil supply while facilitating tax pressure.
SFD will also give $ 41 million to gravity Flow Water Supply Scheme at Mansehra, which will improve access to clean drinking water for 150,000 inhabitants. This project is expected to meet the demand for water in the region until 2040, which benefits from over 200,000 people and improves public health and quality of life.
The signing of these agreements marks a major step forward in Pakistan’s economic cooperation with Saudi Arabia, with both projects aimed at providing important services and strengthening the country’s financial stability.
