Saudi Oil Facility of $1.2 billion to be Operationalized Soon

The Saudi oil facility for Pakistan, worth $1.2 billion, will soon be operationalized for the import of petroleum products. Ambassador of the Kingdom of Saudi Arabia in Islamabad Nawaf bin Saeed Al-Malkiy called on the Federal Minister for Economic Affairs Omar Ayub Khan in his office. Both sides discussed ongoing development projects and new initiatives. The minister appreciated the Saudi support in the priority development areas. During the meeting, it was agreed to operationalize the Saudi oil facility at the earliest. The financing agreement worth $1.2 billion for import of petroleum products was signed on November 29, 2021, between the Saudi Fund for Development (SFD) and Economic Affairs Division (EAD), Pakistan. As per the financing agreement, the SFD will extend the financing facility up to $100 million per month for one year for the purchase of petroleum products on a deferred payment basis. They also discussed the remaining work of development projects in the earthquake-affected areas of Azad Jammu & Kashmir (AJK) and Khyber Pakhtunkhwa (KP). Saudi Fund for Development (SFD) is providing financial assistance for various development projects in the areas of energy, health, education, and infrastructure. Most recently, the SFD has committed to providing financing for Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Gravity Flow Water Scheme Mansehra, and Abbottabad-Muzaffarabad Road Project. The Saudi ambassador assured of continued support at all levels to further strengthen the bilateral economic cooperation between the two brotherly countries. The envoy said that the Kingdom of Saudi Arabia is committed to playing a much stronger role in the socio-economic development of Pakistan.