Islamabad, Feb 5: Saudi Arabia has approved a memorandum of understanding (MoU) with Pakistan aimed at curbing money laundering and terror financing, marking a significant step in bolstering financial security and cooperative ties between the two nations. The decision was made during a Saudi cabinet session chaired by Crown Prince Mohammed bin Salman, as reported by the Saudi Press Agency.
The MoU will facilitate the exchange of financial intelligence and enhance investigative cooperation on offenses related to money laundering and terror financing. This agreement underscores the commitment of both countries to strengthen regulatory frameworks and international collaboration in combating financial crimes.
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This development coincides with a recent agreement between Pakistan and the Saudi Fund for Development (SFD) to defer a $1.2 billion oil import payment by one year. As Saudi Arabia remains Pakistan’s primary petroleum supplier, this deferred payment facility is expected to alleviate pressure on Pakistan’s foreign exchange reserves, especially crucial ahead of the first review of a $7 billion International Monetary Fund bailout scheduled for March.
The cooperative spirit between Pakistan and Saudi Arabia has been underscored by a series of strategic agreements. In October last year, the two nations signed investment and trade deals worth over $2 billion, spanning sectors such as agriculture, semiconductors, textiles, energy, cybersecurity, and digitalization.
The MoU on curbing financial crimes not only strengthens bilateral relations but also aligns with global efforts to enhance transparency in financial transactions and tackle illicit financial flows. Both nations are looking to reinforce their economic partnership while contributing to regional stability and security through these initiatives.
