ISLAMABAD – Prime Minister Shehbaz Sharif has expressed his gratitude to Saudi Crown Prince Mohammed bin Salman (MBS) for providing oil worth $1.2 billion to Pakistan on deferred payment.
Chairing a cabinet meeting on Tuesday, the premier told the members that the crown prince sent a delegation to Pakistan and both sides inked an agreement under which the Kingdom would provide oil facility on deferred payment.
Besides, the Saudi Development Fund will also provide a loan for a $40 million water supply scheme project in Mansehra.
“We are thankful to him as the decision would strengthen our foreign exchange reserves,” PM Shehbaz said while calling Saudi Arabia a brotherly country.
A day earlier, the prime minister and Chief Executive Officer of Saudi Fund for Development (SFD) Sultan Abdulrahman Al-Marshad on Monday witnessed the signing of two agreements between Pakistan and SFD worth $1.61 billion.
The significant agreements pertained to deferred payment for oil import from the Saudi Arabia worth $1.20 billion for one year and the concessional loan agreement for the construction of a gravity-flow water scheme at Mansehra amounting to $41 million.
Secretary Economic Affairs Division Dr. Kazim Niaz and CEO SDF Sultan Bin Abdul Rehman Al Marshad signed the agreements on behalf of their respective governments.
The signing ceremony was also attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, federal ministers, Ambassador of the Kingdom of Saudi Arabia in Pakistan Nawaf bin Said Al-Malki and relevant authorities.
This project will strengthen Pakistan’s economic resilience by securing a stable supply of petroleum products while reducing immediate fiscal burdens.
