Pakistan to receive Saudi oil worth $1.2 billion on deferred payment

ISLAMABAD: Pakistan and Saudi Arabia on Monday signed two agreements worth US$1.61 billion to strengthen bilateral economic cooperation further, ARY News reported.

The signing ceremony between Pakistan and the Saudi Fund for Development (SFD) was witnessed Prime Minister (PM) Shehbaz Sharif and Sultan Abdulrahman Al-Marshad, the SFD’s CEO.

According to state-run news agency APP, the agreements included a concessional credit deal for the building of a gravity-flow water scheme at Mansehra totaling $41 million and a one-year deferred payment for oil imports to Pakistan by the Kingdom of Saudi Arabia worth $1.20 billion.

Secretary Economic Affairs Division Dr. Kazim Niaz and CEO SDF Sultan Bin Abdul Rehman Al Marshad signed the agreements on behalf of their respective governments.

The signing ceremony was also attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, federal ministers, Ambassador of the Kingdom of Saudi Arabia in Pakistan Nawaf bin Said Al-Malki and relevant authorities.

PM Shehbaz welcomed the signing of Oil Import Financing Facility according to which Pakistan will receive oil from Saudi Arabia on deferred payment for one year amounting to US $ 1.20 billion.

This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal burdens.

SFD will provide an amount of US$ 41 million for the Gravity Flow Water Supply Scheme at Mansehra, Khyber Pakhtunkhwa shall enhance access to clean drinking water for 150,000 local people of Mansehra (and will be sufficient to meet the demand by 2040 by providing water to 201,249 people) improving overall public health and quality of life.

Prior to signing ceremony, a SFD delegation led by Sultan Bin Abdul Rehman Al Marshad, Chief Executive Officer (CEO) called on Prime Minister Shahbaz Sharif.

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The prime minister welcomed the delegation and appreciated the long-standing friendship between the Kingdom of Saudi Arabia and Pakistan and the efforts of SFD for providing financing to Pakistan in the fields of health, energy, infrastructure and education as well the for the reconstruction after the 2022 floods, PM Office Media Wing said in a press release.

The CEO, SFD thanked the Prime Minister and Government of Pakistan for the warm welcome and hospitality extended to the Saudi delegation.

The CEO, SFD shared updates with the prime minister about the ongoing projects including Mohmand Multi-purpose Hydropower Project, Golan Gol Hydropower Project, Malakand Regional Development Project, and other projects funded through Saudi grants.

The prime minister, while appreciating the support of the SFD, highlighted the need to expedite the processing of the new projects, shared with SFD, in the field of green energy and infrastructure, which once implemented would go a long way in the economic revival of the country, besides serving the needs of the local communities.

The CEO, SFD assured early processing of the shared projects and also reiterated that the Kingdom of Saudi Arabia, under the leadership of the Royal Family, would extend all possible assistance and continued support to Pakistan.

The prime minister thanked the CEO and members of the delegation and conveyed his best wishes to all the members of the Royal Family, especially Khadim-e-Harmain Sharifain King Salman bin Abdulaziz Al Saud and Crown Prince and Prime Minister Mohammed bin Salman.