Two agreements worth $1.61 billion were signed between Pakistan and the Saudi Fund for Development (SFD) on Monday, which strengthened the two countries' economic cooperation. Prime Minister Shehbaz Sharif and Sultan Abdulrahman Al-Marshad, the CEO of SFD, witnessed the signing.
The major agreements included a concessional loan arrangement for the development of a gravity-flow water infrastructure at Mansehra totalling $41 million and a one-year deferred payment for oil imports from the Kingdom of Saudi Arabia valued at $1.20 billion.
The agreements were signed on behalf of their respective governments by SDF CEO Sultan Bin Abdul Rehman Al Marshad and Economic Affairs Division Secretary Dr. Kazim Niaz.
Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers, Kingdom of Saudi Arabia Ambassador in Pakistan Nawaf bin Said Al-Malki, and other officials also attended the signing event.
The signature of the Oil Import Financing Facility, which will give Pakistan $1.20 billion in oil on deferred payment for a year, was hailed by the prime minister.
Through the reduction of immediate budgetary constraints and the assurance of a steady supply of petroleum products, this initiative will increase Pakistan's economic resilience.
The SFD will contribute $41 million to the Gravity Flow Water Supply Scheme in Mansehra, Khyber Pakhtunkhwa, which will improve the quality of life and public health by giving 150,000 locals in Mansehra access to clean drinking water (and be enough to meet demand by 2040 by providing water to 201,249).
