Pakistan, SFD sign $1.61 billion agreements to boost economic cooperation

Prime Minister Muhammad Shehbaz Sharif and the Chief Executive Officer of Saudi Fund for Development (SFD), Sultan Abdulrahman Al-Marshad, witnessed the signing of two significant agreements between Pakistan and SFD, valued at $1.61 billion.

The agreements were signed on Monday, further strengthening bilateral economic cooperation between the two nations.

The agreements include a deferred payment facility for oil imports from Saudi Arabia worth $1.20 billion, to be paid over one year, and a concessional loan agreement for the construction of a gravity-flow water scheme at Mansehra in Khyber Pakhtunkhwa, amounting to $41 million.

The agreements were signed by Dr. Kazim Niaz, Secretary of the Economic Affairs Division, and Sultan Abdulrahman Al-Marshad, CEO of SFD, on behalf of their respective governments.

The ceremony was attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, along with federal ministers and the Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki.

Prime Minister Shehbaz Sharif expressed his approval of the Oil Import Financing Facility, which will allow Pakistan to receive oil on deferred payments for one year. He emphasised that this agreement will strengthen Pakistan’s economic resilience by securing a stable petroleum supply while easing fiscal pressures.

The SFD will also provide $41 million for the Gravity Flow Water Supply Scheme at Mansehra, which will improve access to clean drinking water for 150,000 residents. This project is expected to meet the demand for water in the region until 2040, benefiting over 200,000 people and enhancing public health and quality of life.

The signing of these agreements marks a major step forward in Pakistan’s economic cooperation with Saudi Arabia, with both projects aimed at providing essential services and strengthening the country’s economic stability.