Prime Minister Shehbaz Sharif and Saudi Fund for Development (SFD) CEO Sultan Abdulrahman Al-Marshad on Monday witnessed the signing of two agreements valued at $1.61 billion.
The agreements, strengthening bilateral economic cooperation between the two nations, comprise a deferred payment facility for oil imports worth $1.20 billion, to be paid over one year, and a concessional loan agreement for the construction of a gravity-flow water scheme at Mansehra in Khyber-Pakhtunkhwa for $41 million.
Expressing his gratitude for the Oil Import Financing Facility, the prime minister emphasized that it would strengthen Pakistan’s economic resilience by securing a stable petroleum supply while easing fiscal pressures.
The second project aims to improve access to clean drinking water for 150,000 residents of Mansehra. This project is expected to meet the demand for water in the region until 2040, benefiting over 200,000 people and enhancing public health and quality of life.
Funding and investment
Separately, the SFD official met Finance Minister Muhammad Aurangzeb and exchanged views on bilateral ties. Aurangzeb shared an update on Pakistan’s improving macroeconomic indicators and expressed his gratitude for the longstanding partnership between Pakistan and Saudi Arabia. He emphasized on the importance of Saudi Arabia’s continued support in funding and investment for Pakistan’s economic growth.
Recalling a recent meeting with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan in Davos, Aurangzeb said he looked forward to attending the first high-level annual conference on challenges and opportunities facing emerging market economies. Jointly organized by the International Monetary Fund (IMF) and Saudi Arabia, the even would take place on Feb. 16-17, 2025.
Al-Marshad lauded Pakistan’s progress in achieving macroeconomic stability and growth, noting this opened up many investment opportunities across various sectors. He particularly noted the potential for further collaboration between Pakistan and Saudi Arabia, inviting investors from the Kingdom to explore these emerging opportunities.
He also acknowledged the valuable contributions of Pakistanis in the development of Saudi Arabia and noted the kingdom’s need for a skilled workforce to meet the demands of its growing market. He suggested a partnership between relevant government ministries and departments in Pakistan to offer training for young Pakistanis in modern and relevant skill sets to meet Saudi Arabia’s labor demands.
The meeting also underscored the strong ties between Pakistan and Saudi Arabia and set the stage for further economic collaboration, with a focus on investment, workforce development, and expanding bilateral cooperation.