Pakistan, Saudi Arabia Sign $1.2 Billion Oil Import Financing Facility

A delegation of Saudi Fund for Development (SFD), led by Sultan bin Abdul Rahman Al-Marshad, Chief Executive Officer (CEO) called on Prime Minister Shahbaz Sharif today where the prime minister premier witnessed signing of Oil Import Financing Facility worth $1.2 billion. The premier 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.   The SFD CEO shared updates about the ongoing projects including Mohmand Multi-purpose Hydropower Project, Golan Gol Hydropower Project, Malakand Regional Development Project, and other projects funded through Saudi grants.  The prime minister, while appreciating the support of the SFD, highlighted the need to expedite the processing of the new projects, shared with SFD, in the field of green energy and infrastructure, which once implemented would go a long way in the economic revival of the country, besides serving the needs of the local communities.  The CEO assured early processing of the shared projects and also reiterated that the Kingdom of Saudi Arabia, under the leadership of the Royal Family, would extend all possible assistance and continued support to Pakistan.   The prime minister witnessed the signing of Oil Import Financing Facility as well as loan agreement for Gravity Flow Water Supply Scheme at Mansehra, Khyber Pakhtunkhwa. Secretary Economic Affairs Division Dr. Kazim Niaz and SFD CEO signed the agreements on behalf of their respective governments. Sharif welcomed the signing of Oil Import Financing Facility under which Pakistan will receive oil on deferred payment for one year totaling $1.20 billion. This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal burdens.   The SFD will provide an amount of $41 million for Gravity Flow Water Supply Scheme at Mansehra, Khyber Pakhtunkhwa which will enhance access to clean drinking water for 150,000 people 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.