Islamabad:In a major step toward strengthening bilateral economic ties, Pakistan and Saudi Arabia signed two agreements worth $1.61 billion on Monday. The signing ceremony, witnessed by Prime Minister Shehbaz Sharif and Saudi Fund for Development (SFD) CEO Sultan Abdulrahman Al-Marshad,marks a significant development in Pakistan-Saudi relations.
According to state-run APP, the agreements include:
$41 million concessional credit** for the construction of a gravity-flow water supply scheme in Mansehra.
$1.2 billion oil import financing facility from Saudi Arabia, allowing Pakistan to receive oil on a one-year deferred payment basis.
Strengthening Pakistan’s Economic Stability
The oil financing agreement aims to bolster “Pakistan’s economic resilience” by securing a steady petroleum supply while easing immediate financial pressures. Meanwhile, the Mansehra water project will provide clean drinking water to 150,000 people, with capacity to meet demand for over 200,000 residents by 2040, significantly improving public health.
High-Level Delegations & Future Collaborations
A delegation led by SFD CEO Sultan Bin Abdul Rehman Al-Marshad met PM Shehbaz Sharif before the signing. During the discussions, the prime minister commended Saudi Arabia’s unwavering support in various sectors, including health, energy, infrastructure, and education, particularly its contributions to Pakistan’s post-2022 flood reconstruction efforts.
The SFD CEO also updated the prime minister on ongoing Saudi-funded projects, including:
🔹 **Mohmand Multi-purpose Hydropower Project**
🔹 **Golen Gol Hydropower Project**
🔹 **Malakand Regional Development Project**
The prime minister emphasized the need to expedite new green energy and infrastructure projects, which he believes will play a crucial role in Pakistan’s economic revival and community development.
Saudi Arabia’s Continued Support
The SFD CEO reaffirmed Saudi Arabia’s commitment to assisting Pakistan, stating that under the leadership of the Royal Family, the Kingdom will extend all possible support to Pakistan’s economic growth and development.
PM Shehbaz Sharif expressed gratitude to Saudi leadership, including King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman, for their unwavering support and friendship.
This latest agreement marks yet another milestone in the deep-rooted ties between Pakistan and Saudi Arabia, paving the way for stronger economic collaboration and sustainable development.
