Islamabad, Oct 29: In order to negotiate the details of a $1.2 billion oil facility, a high-level Saudi delegation is expected to travel to Pakistan by December 2024.
According to a national daily, Saudi Arabia recently reaffirmed its readiness to assist Pakistan in obtaining clearance from the International Monetary Fund (IMF) for a $7 billion Extended Fund Facility (EFF).
Pakistan intends to apply for a 12-month Saudi Oil Facility deferred payment plan with monthly payments of $100 million. The facility may run for three years, but the precise time frame is still unknown. The payments might begin in 2025.
Out of a pledged 1.6 billion Saudi riyals, the Saudi Fund for Development (SFD) distributed roughly 1.3 billion SR for development projects in Pakistan in 2023.
The Mohmand Dam, which will store 1.6 million cubic meters of water, generate 800 megawatts of electricity, and reduce the risk of flooding, was built with 901.25 million SR from the SFD.
Funding for irrigation projects along the Indus River (231.5 million SR) and repairs to the Tarbela Dam (178.28 million SR) were two other noteworthy contributions from the SFD in 2023.
The KSA provided grants of 3.5 billion SR for a range of infrastructure projects in Pakistan, such as the reconstruction of Malakand’s infrastructure, the Makran Coastal Highway, and the Neelum-Jhelum and Golen Gol hydropower plants.
