Pakistan and Saudi Arabia Sign $1.61 Billion Agreements to Boost Bilateral Economic Cooperation

Islamabad, The Gulf Observer: Prime Minister Muhammad Shehbaz Sharif and the Chief Executive Officer (CEO) of the Saudi Fund for Development (SFD), Sultan Abdulrahman Al-Marshad, witnessed the signing of two significant agreements between Pakistan and Saudi Arabia, valued at $1.61 billion, aimed at strengthening bilateral economic ties.

The agreements were signed on Monday and include a $1.20 billion deferred payment facility for oil imports and a $41 million concessional loan for the construction of a gravity-flow water scheme at Mansehra, Khyber Pakhtunkhwa. These agreements highlight the continued partnership between the two nations in vital sectors such as energy and infrastructure.

The oil import facility will allow Pakistan to secure oil on deferred payments for one year, providing the country with much-needed economic relief. Prime Minister Shehbaz Sharif expressed his approval of the facility, stating that it would bolster Pakistan’s economic resilience by ensuring a stable supply of petroleum while alleviating fiscal pressures.

The second agreement focuses on the Gravity Flow Water Supply Scheme at Mansehra, which will serve as a crucial project to improve access to clean drinking water for 150,000 residents. The $41 million concessional loan will help address the region’s water needs until 2040, benefiting over 200,000 people and significantly improving public health and the overall quality of life.

The agreements were signed by Dr. Kazim Niaz, Secretary of the Economic Affairs Division, and Sultan Abdulrahman Al-Marshad, CEO of SFD, representing their respective governments. The ceremony was attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, along with other federal ministers and the Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki.

This significant step forward in Pakistan-Saudi Arabia economic cooperation underscores the shared commitment of both countries to advancing mutual development. With the focus on energy security and essential infrastructure projects, these agreements are poised to play a key role in enhancing Pakistan’s economic stability and public welfare.