Islamabad, February 3, 2025: Pakistan and the Saudi Fund for Development (SFD) have signed agreements worth $1.61 billion, further deepening bilateral economic cooperation between the two nations. The signing ceremony was held in the presence of Prime Minister Shehbaz Sharif and SFD CEO Sultan Abdulrahman Al-Marshad.
One of the agreements includes a $1.20 billion deferred oil payment facility, allowing Pakistan to import oil from Saudi Arabia on a deferred basis for one year. This arrangement is expected to enhance Pakistan’s economic stability by ensuring a steady supply of petroleum products while easing immediate fiscal pressure.
Another key agreement involves a $41 million concessional loan for the construction of a gravity-flow water supply scheme in Mansehra, Khyber Pakhtunkhwa. The project aims to provide clean drinking water to 150,000 people, with its capacity designed to meet the needs of up to 201,249 residents by 2040. The initiative is expected to significantly improve public health and quality of life in the region.
The agreements were signed by Secretary Economic Affairs Division Dr. Kazim Niaz and SFD CEO Sultan Abdulrahman Al-Marshad on behalf of their respective governments. The signing ceremony was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers, Saudi Ambassador Nawaf bin Said Al-Malki, and other senior officials.
Prime Minister Shehbaz Sharif welcomed the Oil Import Financing Facility, highlighting its importance in strengthening Pakistan’s economic resilience. He expressed gratitude for Saudi Arabia’s continued support, particularly in critical areas such as development and infrastructure. The agreements mark another milestone in the strong economic ties between Pakistan and Saudi Arabia, reinforcing their partnership in energy security and public welfare initiatives.
