Pakistan and Saudi Arabia fortified their Pakistan-Saudi economic ties by signing two pivotal agreements worth $1.61 billion on Monday. Prime Minister Shehbaz Sharif and SFD CEO Sultan Abdulrahman Al-Marshad oversaw the ceremony, underscoring strategic collaboration.
Deferred Oil Payments Ease Fiscal Pressure
Under the first pact, Saudi Arabia will supply $1.2 billion in oil via deferred payments for one year. This critical step stabilizes Pakistan’s fuel access while reducing short-term financial strain. Shehbaz Sharif praised the deal, highlighting its role in enhancing economic resilience.
Moreover, the deferred oil plan secures long-term energy affordability. By spreading payments, Pakistan can allocate funds to urgent priorities like infrastructure and social programs.
Gravity-Flow Water Project Transforms Mansehra
The second agreement includes a $41 million SFD loan for a gravity-flow water system in Mansehra. This transformative initiative will provide clean water to 150,000 residents immediately, scaling to 201,249 by 2040. Consequently, public health and living standards will rise sharply.
Additionally, the project minimizes energy use through gravity-based design, cutting operational costs. Local communities gain sustainable access to safe drinking water, curbing diseases linked to contaminated sources.
Leaders Hail Strengthened Pakistan-Saudi Economic Ties
Deputy PM Ishaq Dar, Saudi Ambassador Nawaf Al-Malki, and federal ministers attended the signing. Both nations reaffirmed their commitment to expanding Pakistan-Saudi economic ties across sectors like energy, water, and development.
Significantly, these deals reflect Saudi Arabia’s confidence in Pakistan’s growth trajectory. The SFD’s concessional loan terms further ease repayment burdens, fostering mutual prosperity.
With $1.2 billion in oil financing and a $41 million water scheme, Pakistan-Saudi economic ties enter a transformative phase. These projects address immediate needs while laying foundations for long-term stability. As partnerships deepen, both nations anticipate stronger bilateral cooperation and shared progress.
