A high-level Saudi delegation is expected to visit Pakistan by December 2024 to finalize negotiations on a $1.2 billion oil facility.
According to reports, Saudi Arabia has also reaffirmed its commitment to supporting Pakistan in securing International Monetary Fund (IMF) approval for a $7 billion Extended Fund Facility (EFF).
Pakistan plans to seek a 12-month deferred payment arrangement under the Saudi Oil Facility, involving monthly payments of around $100 million. While the program may extend up to three years, the exact duration has yet to be determined. Repayments are expected to begin in 2025.
In 2023, the Saudi Fund for Development (SFD) disbursed approximately 1.3 billion Saudi riyals (SR) out of a pledged 1.6 billion SR for development projects in Pakistan.
Key contributions included 901.25 million SR for the construction of the Mohmand Dam, designed to store 1.6 million cubic meters of water, generate 800 megawatts of electricity, and mitigate flood risks. The SFD also provided 231.5 million SR for irrigation projects along the Indus River and 178.28 million SR for rehabilitation works at the Tarbela Dam.
Additionally, Saudi Arabia granted 3.5 billion SR for various infrastructure initiatives, such as rebuilding Malakand’s infrastructure, developing the Makran Coastal Highway, and financing the Neelum-Jhelum and Golen Gol hydropower plants.
