Pakistan and Saudi Arabia sign $1.2 billion oil import financing deal
In a significant development, a delegation from the Saudi Fund for Development (SFD), led by CEO Sultan bin Abdul Rahman Al-Marshad, met with Prime Minister Shahbaz Sharif today to witness the signing of an Oil Import Financing Facility worth $1.2 billion.
The Prime Minister warmly welcomed the SFD delegation and expressed appreciation for the strong ties between Pakistan and Saudi Arabia, particularly highlighting SFD’s financial contributions to health, energy, infrastructure, education, and flood reconstruction projects.
Sultan bin Abdul Rahman Al-Marshad provided updates on ongoing initiatives like the Mohmand Multi-purpose Hydropower Project, Golan Gol Hydropower Project, and Malakand Regional Development Project, all funded through Saudi grants.
Prime Minister Sharif praised SFD’s support and stressed the need to fast-track new projects in green energy and infrastructure, which would significantly contribute to Pakistan’s economic revival and benefit local communities. The SFD CEO assured the early processing of these projects and reaffirmed Saudi Arabia’s ongoing assistance under the leadership of the Royal Family.
The signing ceremony also included agreements for the Gravity Flow Water Supply Scheme in Mansehra, Khyber Pakhtunkhwa, with the SFD committing $41 million. This project will provide clean drinking water to 150,000 people, improving public health and quality of life for over 200,000 individuals by 2040.
The Oil Import Financing Facility will allow Pakistan to import petroleum products on deferred payment over one year, easing fiscal pressures and bolstering economic stability.
