Saudi Arabia And Pakistan Finalise US$1.2 Billion Oil Derivatives Agreement And Water Supply Project

The Saudi Fund for Development (SFD) has entered into a significant financing agreement with Pakistan, valued at US$1.2 billion, to facilitate the import of oil derivatives. This agreement was signed by SFD Chief Executive Sultan Al-Marshad and Dr. Kazim Niaz, Secretary for Pakistan's Ministry of Economic Affairs. The signing ceremony was attended by Pakistani Prime Minister Muhammad Shehbaz Sharif and Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki.

This financial support is part of Saudi Arabia's ongoing assistance to Pakistan through the SFD, which has provided approximately US$6.7 billion for oil derivatives since 2019. The Kingdom aims to strengthen Pakistan’s economy and address its economic challenges through this funding. Additionally, it seeks to support crucial sectors within the country.

In addition to the oil derivatives agreement, a development soft loan worth US$41 million was signed to finance a water supply project in Mansehra, Pakistan. This project will involve laying about 400 kilometers of pipes for water networks, benefiting over 150,000 residents. A water treatment plant with a capacity of approximately 21,000 cubic meters per day will also be established.

The water supply initiative aims to reduce waterborne diseases and epidemics in the region by providing clean drinking water. This reflects the SFD's commitment to addressing developmental challenges in various developing countries and highlights the importance of international cooperation for sustainable development.

During the signing ceremony, discussions took place between the Pakistani prime minister and the SFD chief on enhancing cooperation between Saudi Arabia and Pakistan. The focus was on financing vital sectors across Pakistan to further strengthen bilateral ties and promote economic stability.

The agreements underscore Saudi Arabia's dedication to supporting development in beneficiary nations through international collaboration. By addressing key challenges in developing countries like Pakistan, these initiatives aim to foster sustainable growth and improve living conditions for local populations.

The SFD's efforts highlight its role in promoting global solidarity and cooperation for achieving long-term development goals. Through strategic partnerships and targeted investments, it continues to play a crucial role in supporting economic progress in various regions worldwide.

With inputs from SPA