Pakistan, Saudi Arabia ink agreement to finance oil derivatives

ISLAMABAD: Pakistan and the Kingdom of Saudi Arabia (KSA) on Thursday signed an agreement to finance oil derivatives worth $1 billion, ARY News reported.

According to a statement, the agreement was inked by Secretary Economic Affairs Dr Kazem Niaz and Chief Executive Officer (CEO) of the Saudi Fund for Development (SDF) Sultan bin Abdulrahman Al-Murshed.

Saudi Arabia, as per the agreement, will finance oil derivatives worth $1 billion to support Pakistan’s economy, sector growth, and navigating economic challenges.

Dr Kazem Niaz, on the occasion, said the step was an extension of previously signed agreements in 2019 and 2021 valued at $4.44 billion to finance oil derivatives in Pakistan.

Since its establishment, he said, the Saudi Fund for Development had supported more than 40 projects and programmes in different development sectors valued at approximately $1.4 billion.

All the programmes were aimed at helping the country achieve its sustainable development goals and build a prosperous future, he added.

Saudi Fund for Development CEO Sultan bin Abdulrahman Al-Murshed said the agreement emphasised the Kingdom of Saudi Arabia’s commitment to continue supporting the brotherly Islamic Republic of Pakistan.

The agreement also reflected the interest of “our leaders in supporting the Government of Pakistan to navigate economic challenges and build a sustainable economy”, he added.

“I am pleased to convey to you the greetings and wishes of the Government of Saudi Arabia for a continuous progress, growth, and prosperity in Pakistan.”

Earlier, a Saudi Press Agency said Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, has directed to study augmenting Saudi Arabia’s investments in Pakistan, which have previously been announced on August 25, 2022 and were slated to reach US $10 billion.

The SPA said the Crown Prince also directed the Saudi Development Fund (SDF) to study increasing the amount of the deposit provided by Saudi Arabia in favor of the State Bank of Pakistan (SBP). This has been extended on December 2, 2022 to hit a US $5 billion ceiling, the agency said.

The Saudi official news agency said the move strengthened the Kingdom’s position to support the economy of Pakistan and support its people. The report pointed that the move followed communication between the Crown Prince and Prime Minister Muhammad Shehbaz Sharif.