Islamabad, Riyadh agree to step up oil facility

Saudi ambassador, economic affairs minister discuss ongoing uplift projects and new initiatives

ISLAMABAD:

Pakistan and Saudi Arabia on Thursday agreed to operationalise the kingdom’s oil facility at the earliest for which an agreement worth $ 1.2 billion for the import of petroleum products was signed on November 29, 2021, between the two countries.

Saudi Ambassador Nawaf bin Said Al-Malki called on Federal Economic Affairs Minister Omar Ayub at his office and they both discussed the ongoing development projects and new initiatives. Omar appreciated the Saudi support in the priority development areas.

As per the financing agreement, the Saudi Fund for Development (SFD) will extend the financing facility up to $100 million per month for one year for the purchase of petroleum products on a deferred payment basis.

They also discussed the remaining work of development projects in the earthquake-affected areas of Azad Jammu and Kashmir (AJK) and Khyber-Pakhtunkhwa (K-P).

The SFD is providing financial assistance for various development projects in the areas of energy, health, education and infrastructure. Most recently, the SFD has committed to providing financing for the Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Gravity Flow Water Scheme Mansehra and Abbottabad-Muzaffarabad Road Project.

The SFD is working to rehabilitate infrastructure in areas affected by natural and man-made disasters to improve people’s access to socio-economic services and civic amenities. Its partnership with the United Nations Development Programme (UNDP) is crucial to improving sustainable development in Pakistan.

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The SFD is supporting the UNDP and the K-P government in rehabilitating damaged community infrastructure schemes, including link roads, street pavements, irrigation and drainage channels, small bridges and culverts in the Swat district. It has allocated $11.667 million for this purpose.

The Saudi Ambassador assured the minister of continued support at all levels to further strengthen the bilateral economic cooperation between the two brotherly countries.

He expressed Saudi Arabia’s desire to play a much stronger role in the socio-economic development of Pakistan.

In November last year, SFD CEO Sultan bin Abdulrahman Al-Marshad signed two economic agreements with the Pakistani government amounting to $4.2 billion

The first agreement, including a $3 billion deposit provided by Saudi Arabia to the State Bank of Pakistan, will help support the country’s foreign currency reserves and help mitigate the adverse effects of the Covid-19 pandemic.

The second agreement to finance the trade of oil derivatives with a value of S$1.2 billion for one year to Pakistan was signed by Minister Omar in the presence of the SFD CEO as well as the Saudi ambassador at the headquarters of the Ministry of Economic Affairs in Islamabad.

Speaking on the occasion, Omar had said Pakistan greatly valued its bilateral and brotherly relations with Saudi Arabia and thanked the kingdom for extending vital support for implanting the infrastructure and energy projects in Pakistan.