Pakistan and Saudi Arabia have signed two significant agreements valued at $1.61 billion to enhance economic ties between the two nations. The agreements were officially signed on February 3, 2025, with Prime Minister Shehbaz Sharif and Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development (SFD), overseeing the event.
Among the major deals, the first includes a $41 million concessional loan for the development of a gravity-flow water supply infrastructure in Mansehra, Khyber Pakhtunkhwa. The second agreement provides Pakistan with a $1.20 billion oil import financing facility, allowing for the deferred payment of oil imports from Saudi Arabia for one year.
The agreements were signed by Sultan Bin Abdul Rehman Al Marshad, CEO of SFD, and Dr. Kazim Niaz, Secretary of the Economic Affairs Division.
The signing ceremony was attended by Deputy Prime Minister Ishaq Dar, Federal Ministers, and Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki, along with other key officials.
The oil import facility aims to ease Pakistan’s immediate budgetary pressures and provide a steady supply of petroleum products, thereby boosting the country’s economic resilience. The deal will provide much-needed support for Pakistan’s energy sector.
The gravity-flow water supply scheme in Mansehra is another milestone in the agreements, which will provide clean drinking water to around 150,000 people in the region. The scheme, expected to meet future demands, will benefit over 200,000 individuals by 2040.
These agreements are part of Pakistan’s broader efforts to strengthen its economic ties with Saudi Arabia, which continues to support Pakistan’s development initiatives.
