Pakistan to import Saudi oil on deferred payment for one year
1. Pakistan, SFD ink concessional loan agreement for construction of gravity-flow water scheme at Mansehra
ISLAMABAD: Pakistan has secured a $1.2 billion agreement with the Saudi Fund for Development (SFD), allowing for the import of Saudi oil on a deferred payment basis for one year.
Prime Minister Shehbaz Sharif and SFD CEO Sultan Abdulrahman Al-Marshad were present for the signing of two agreements worth a total of $1.61 billion, further strengthening the economic ties between the two countries.
The Prime Minister expressed his approval of the Oil Import Financing Facility, which ensures a stable supply of petroleum products for Pakistan while alleviating immediate fiscal pressures. "This initiative will bolster Pakistan’s economic resilience," said a statement following the agreement.
In addition, the two parties signed a concessional loan agreement valued at $41 million for the development of a gravity-flow water scheme in Mansehra, set to benefit around 150,000 people in the region.
Saudi petroleum products are a significant portion of Pakistan's import expenses, and this agreement will help Islamabad enhance its foreign reserves ahead of the first review of a $7 billion IMF bailout scheduled for March.
SFD Delegation Meets Prime Minister
After the signing ceremony, the SFD delegation met with the Prime Minister to discuss updates on ongoing projects, including the Mohmand Multi-purpose Hydropower Project, Golan Gol Hydropower Project, and Malakand Regional Development Project, along with other initiatives funded by Saudi grants.
The Prime Minister acknowledged the long-standing friendship between Saudi Arabia and Pakistan and appreciated the SFD’s contributions in the areas of health, energy, infrastructure, education, and post-flood reconstruction efforts in 2022.
PM Shehbaz also emphasized the importance of accelerating the processing of new projects, particularly in green energy and infrastructure, which would contribute significantly to Pakistan’s economic revival and address the needs of local communities.
In response, SFD CEO Sultan Abdulrahman Al-Marshad assured the early processing of these projects and reiterated Saudi Arabia’s continued support under the leadership of the royal family.
