Pakistan, Saudia Arabia agree to operationalise Saudi oil facility of $1.2b

ISLAMABAD - Pakistan and Saudia Arabia agreed on Thursday to operationalise the Saudi oil facility of $1.2 billion at the earliest. 
Saudi Arabia had announced financial assistance of $4.2 billion for Pakistan in October last year during the visit of Prime Minister Imran Khan to the kingdom. Saudi Arabia had agreed to revive its financial support to Pakistan, including about $3 billion in safe deposits and $1.2bn worth of oil supplies on deferred payments. Later, in early December, Pakistan had received much needed $3 billion from Saudi Arabia that helped in building country’s foreign exchange reserves. Now, both the countries agreed to operationalise the Saudi oil facility of $1.2 billion at the earliest. 
Ambassador of the Kingdom of Saudi Arabia in Islamabad Nawaf bin Saeed Al-Malkiy called on the Federal Minister for Economic Affairs Omar Ayub Khan in his office. “During the meeting, it was agreed to operationalize the Saudi oil facility at the earliest. The financing agreement worth $1.2 billion for import for petroleum products was signed on 29th November, 2021 between the Saudi Fund for Development (SFD) and Economic Affairs Division (EAD), Pakistan. As per financing agreement, the SFD will extend financing facility up to US$ 100 million per month for one-year for purchase of petroleum products on deferred payment basis,” said Ministry of Economic Affairs in a statement on Thursday. 
Both the sides discussed ongoing development projects and new initiatives. The minister for economic affairs appreciated the Saudi support in the priority development areas. They also discussed the remaining work of development projects in the earthquake affected areas of Azad Jammu & Kashmir (AJK) and Khyber Pakhtunkhwa (KP). 
Saudi Fund for Development (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 provide financing for Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Gravity Flow Water Scheme Mansehra, and Abbottabad- Muzaffarabad Road Project. The Saudi ambassador assured of continued support at all levels to further strengthen the bilateral economic cooperation between the two brotherly countries. The Saudi ambassador expressed that the Kingdom of Saudi Arabia is committed to play a much stronger role in the socioeconomic development of Pakistan.

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