ISLAMABAD: Pakistan and Saudi Arabia agreed on Thursday to start operating the kingdom’s oil facility as soon as possible, following the signing of a $ 1.2 billion agreement for the import of petroleum products on November 29, 2021.
Nawaf bin Said Al-Malki, Saudi Arabia’s ambassador, paid a visit to Federal Economic Affairs Minister Omar Ayub in his office, where they reviewed ongoing economic projects and new initiatives. Omar praised Saudi Arabia’s assistance in key development sectors.
The Saudi Fund for Development (SFD) would extend a financial facility of up to $100 million per month for one year for the purchase of petroleum products on a deferred payment basis, according to the financing agreement.
They also reviewed the work that remains to be done on development projects in the earthquake-affected areas of Azad Jammu and Kashmir (AJK) and Khyber-Pakhtunkhwa (KPK) (K-P).
The SFD is giving financial help for numerous development projects in the fields of energy, health, education and infrastructure. The SFD has recently committed to funding the Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Mansehra Gravity Flow Water Scheme, and Abbottabad-Muzaffarabad Road Project.
The SFD is aiming to increase people’s access to socio-economic services and civic amenities in areas damaged by natural and man-made catastrophes through repairing infrastructure. Its collaboration with the United Nations Growth Programme (UNDP) is critical to Pakistan’s long-term development.
In the Swat district, the SFD is assisting the UNDP and the K-P government in repairing damaged community infrastructure, including as connecting roads, street pavements, irrigation and drainage channels, small bridges, and culverts. $11.667 million has been set aside for this purpose.
The Saudi Ambassador guaranteed the minister that his country would continue to support them at all levels in order to strengthen bilateral economic cooperation between the two countries.
Saudi Arabia wants to play a far bigger role in Pakistan’s socioeconomic growth, he said.
SFD CEO Sultan bin Abdulrahman Al-Marshad inked two $4.2 billion business agreements with the Pakistani government in November of last year.
The first deal, which includes a $3 billion payment from Saudi Arabia to Pakistan’s State Bank, will aid the country’s foreign currency reserves and offset the consequences of the Covid-19 outbreak.
Minister Omar inked a second deal with Pakistan to finance the trade of oil derivatives worth S$1.2 billion for a year in the presence of the SFD CEO and the Saudi ambassador at the Ministry of Economic Affairs headquarters in Islamabad.
Omar had noted on the occasion that Pakistan treasured its bilateral and brotherly relations with Saudi Arabia and thanked the kingdom for providing crucial support for the development of Pakistan’s infrastructure and energy projects.
