A delegation from the Saudi Fund for Development (SFD), led by its Chief Executive Officer (CEO) Sultan bin Abdul Rahman Al-Marshad, met with Prime Minister Shahbaz Sharif on Tuesday, where the premier witnessed the signing of a $1.2 billion Oil Import Financing Facility. The agreement aims to provide Pakistan with oil on deferred payment for one year, easing fiscal pressures and ensuring a stable supply of petroleum products.
During the meeting, Prime Minister Sharif welcomed the delegation and praised the enduring friendship between Pakistan and Saudi Arabia. He acknowledged the SFD’s significant contributions to Pakistan in sectors such as health, energy, infrastructure, and education, as well as its support for reconstruction efforts following the devastating 2022 floods.
The SFD CEO provided updates on ongoing projects funded by Saudi grants, including the Mohmand Multi-purpose Hydropower Project, Golan Gol Hydropower Project, and the Malakand Regional Development Project. The prime minister expressed his gratitude for Saudi Arabia’s continued support and emphasized the importance of expediting new projects in green energy and infrastructure, which he said would play a vital role in Pakistan’s economic recovery and benefit local communities.
Sultan bin Abdul Rahman Al-Marshad assured the prime minister of the Kingdom’s commitment to processing the proposed projects swiftly. He reiterated Saudi Arabia’s dedication, under the leadership of the Royal Family, to providing all possible assistance to Pakistan.
The prime minister also witnessed the signing of a loan agreement for the Gravity Flow Water Supply Scheme in Mansehra, Khyber Pakhtunkhwa. Secretary Economic Affairs Division Dr. Kazim Niaz and SFD CEO Sultan bin Abdul Rahman Al-Marshad signed the agreements on behalf of their respective governments.
Under the Oil Import Financing Facility, Pakistan will receive $1.2 billion worth of oil on deferred payment, a move expected to bolster the country’s economic resilience by reducing immediate fiscal burdens and ensuring a steady supply of petroleum products.
The SFD will also provide $41 million for the Gravity Flow Water Supply Scheme in Mansehra. The project is designed to improve access to clean drinking water for 150,000 people initially, with the capacity to meet the needs of 201,249 people by 2040. This initiative is expected to significantly enhance public health and quality of life in the region.
Prime Minister Sharif welcomed the agreements, calling them a testament to the strong partnership between Pakistan and Saudi Arabia and a step forward in addressing Pakistan’s economic and developmental challenges.
