Pakistan, KSA agree to start $1.2bln oil facility on deferred payment

ISLAMABAD, February 3: Pakistan and Saudi Arabia have agreed to operationalise the Saudi oil facility, worth $1.2 billion, at the earliest.
An understanding to this effect came at a meeting between Minister for Economic Affairs Division Omar Ayub Khan and Saudi Ambassador Nawaf bin Saeed Al-Malkiy on Thursday.
The Saudi ambassador expressed that the Kingdom of Saudi Arabia is  committed to playing a much stronger role in the socioeconomic development of Pakistan. He assured of continued support at all levels to further strengthen the bilateral economic cooperation between the two brotherly countries. The minister appreciated the Saudi support in the priority development areas.
Both sides discussed ongoing development projects and new initiatives. It was agreed to operationalise the Saudi oil facility at the earliest.
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 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) of Pakistan. As per financing agreement, the SFD will extend the financing facility up to $100 million per month for one-year for purchase of petroleum products on deferred payment basis. -NNI