Saudi Arabia inks new pact with Pakistan to finance $1bn oil derivatives

ISLAMABAD – Saudi Arabia has signed an agreement with Pakistan to finance the oil derivatives worth $1 billion to the South Asian nation.

In a statement, the Economic Affairs division said Islamabad and Riyadh signed a pact to finance oil derivatives worth $1 billion in the presence of officials from friendly nations.

EAD said the Secretary Ministry of Economic Affairs Dr Kazim Niaz and Chief Executive Officer (CEO) of the SFD Sultan Abdulrahman Al-Marshad signed the agreement in the federal capital.

Secretary Ministry EAD said the recent agreement was an extension of signed pacts to finance oil derivatives in Pakistan. Saudi Fund for Development put $1.4 billion to cater more than 40 projects and programmes aimed to augment financial stability in the cash-strapped country, he said.

Following directives from King Salman bin Abdulaziz Al Saud & HRH Mohammed bin Salman, #SFD CEO Mr. Sultan Al-Marshad, signed an agreement with Pakistan’s Secretary Ministry of Economic Affairs, Dr. Kazim Niaz, to finance oil derivatives worth USD 1 Billion to #Pakistan. pic.twitter.com/5NTg779gS9

— الصندوق السعودي للتنمية (@SaudiFund_Dev) January 12, 2023

The Chief of the Saudi fund mentioned Kingdom’s continued commitment to supporting the brotherly nation.

The recent development comes days after Pakistan's Army Chief completed his weeklong tour of Saudi Arabia and the UAE, which was said to be 'economic diplomacy' to ease the ongoing crisis, that worsened over the last couple of months and now the sword of default is hanging over Pakistan.

Following the visit, Saudi crown prince Mohammed bin Salman ordered to study augmenting Kingdom's investments to $10 billion in Pakistan.

Saudi Arabia mulls boosting investments in Pakistan to $10 billion