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Home Sector Banking & Finance Saudi Fund for Development, Pakistan finalize $1.2 billion financing agreement for oil derivatives

Saudi Fund for Development, Pakistan finalize $1.2 billion financing agreement for oil derivatives

Saudi Arabia's SFD has provided $6.7 billion in oil derivatives support to Pakistan since 2019
Saudi Fund for Development, Pakistan finalize $1.2 billion financing agreement for oil derivatives
Pakistani Prime Minister Muhammad Shehbaz Sharif together with Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki observed the notable agreement. (Photo Credit: SPA)

Through a financing agreement Saudi Fund for Development Chief Executive Sultan Al-Marshad sealed together with Pakistani Secretary for Ministry of Economic Affairs Dr. Kazim Niaz to import oil derivatives valued at $1.2 billion.

Pakistani Prime Minister Muhammad Shehbaz Sharif together with Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki observed the notable agreement, SPA reported.

Through the Saudi Fund for Development, Saudi Arabia maintains persistent financial backing for Pakistan since 2019 when it began dedicating $6.7 billion to oil derivative imports. Kingdom of Saudi Arabia has made this financial pledge to reinforce Pakistan’s economy and help resolve its economic problems while promoting essential sectors.

Additional development initiatives

The two parties reached a development soft loan agreement with a value of $41 million in addition to their financing agreement for oil derivatives. The $41 million soft loan has been designated to bring drinking water resources to Mansehra in Pakistan. The development project requires 400 kilometers of water pipeline installation to deliver drinking water services to over 150,000 people. The water treatment facility with its daily 21,000 cubic meter processing capacity will help reduce waterborne diseases and epidemics throughout Pakistan.

Read more: Pakistan sets sights on $20 billion trade surge with Saudi Arabia

Commitment to sustainable development

Through these agreements the Saudi Fund for Development demonstrates its commitment to lead the resolution of development issues affecting many nations in progress. International support and solidarity prove essential for sustained development programs in the beneficiary countries according to these contracts.

At the signing event the SFD chief together with the Pakistani prime minister explored ways to strengthen bilateral cooperation particularly through financing strategic sectors across Pakistan.

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