Prime Minister Shehbaz Sharif announced on Tuesday that the Saudi Fund for Development (SFD) has approved a $40 million grant to build the King Salman Hospital in Pakistan's northwestern Khyber Pakhtunkhwa province.
The project is part of a broader series of collaborative efforts between Pakistan and Saudi Arabia aimed at bolstering infrastructure and health services in the country.
The announcement follows a significant agreement signed a day earlier, in which Pakistan secured a one-year deferment on a $1.2 billion payment for oil imports under an SFD-backed facility.
This arrangement will allow Pakistan to enhance its foreign reserves ahead of the first review of a $7 billion International Monetary Fund (IMF) bailout, which is scheduled for March.
PM Shehbaz highlighted that the King Salman Hospital is among several projects supported by the SFD, which has funded over 40 projects in Pakistan since its inception in 1975.
These initiatives, totaling approximately $1.4 billion, have focused on sectors such as energy, water, transportation, and infrastructure.
“Other SFD projects, like the King Salman Hospital with a $40 million investment, will be fully funded and built in Hazara,” Sharif said during a federal cabinet meeting, expressing gratitude to the Saudi authorities for their ongoing support.
In addition to the hospital project, Sharif announced that Pakistan had also finalised a loan agreement with SFD for the Gravity Flow Water Supply Scheme in the Mansehra district of Khyber-Pakhtunkhwa. This project, which will provide $41 million, aims to improve access to clean drinking water for at least 150,000 people in the region.
The Saudi Fund has also proposed a partnership with Pakistan to provide training programs for young Pakistanis, equipping them with modern and relevant skills to meet the labor demands of Saudi Arabia.
This initiative is particularly important as Pakistanis make up one of the largest migrant communities in Saudi Arabia, with an estimated 2.64 million working there as of 2023.
As Saudi Arabia pushes forward with its Vision 2030 economic modernization plan, there is an increasing demand for skilled labor.
These developments mark a significant step in the continued partnership between Pakistan and Saudi Arabia, reflecting their commitment to enhancing bilateral ties and supporting Pakistan’s economic stability.
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