RIYADH, November 29, 2021
In the implementation of the Saudi Royal Directive aimed at supporting the economic growth of the Islamic Republic of Pakistan, and on behalf of His Excellency Mr. Ahmed Aqeel Al Khateeb, Chairman of the Board of Directors of the Saudi Fund for Development, the CEO of the Fund Mr. Sultan bin Abdulrahman Al-Marshad today signed two economic agreements with the Pakistani Government amounting to US$4.2 billion.
The first agreement, including a US$3 billion deposit provided by the Kingdom of Saudi Arabia to the Central Bank of Pakistan, will help support the country’s foreign currency reserves and help mitigate the adverse effects of the COVID-19 pandemic. The agreement was signed by Mr. Reza Baqer, Governor of the Central Bank of Pakistan, and Mr. Sultan bin Abdulrahman Al-Marshad, the CEO of the Saudi Fund for Development, in the presence of His Excellency the Consul General of the Kingdom in Karachi, Mr. Bandar bin Fahad Al Dayel, at the headquarters of the Central Bank in Karachi.
The second agreement to finance the trade of oil derivatives with a value of US$1.2 billion for one year to Pakistan, was signed by His Excellency Mr. Omar Ayub Khan, Minister for Economic Affairs of Pakistan, in the presence of the CEO of SFD as well as His Excellency Mr. Nawaf bin Said Al-Malki, the Ambassador of the Kingdom of Saudi Arabia to Pakistan at the headquarters of the Ministry of Economic Affairs in Islamabad.
Talking on the occasion, Minister for Economic Affairs stated that Pakistan greatly values the bilateral and brotherly relations with the Kingdom of Saudi Arabia and thanked the KSA for extending vital support for implanting the infrastructure and energy projects in Pakistan. In the past the Kingdom of Saudi Arabia assisted Pakistan generously during the earthquake of 2005. Recently, they have signed projects worth USD 500 million during the visit of Prime Minister of Pakistan to Kingdom of Saudi Arabia in May 2021.
Mr. Al-Marshad, CEO of the Saudi Fund for Development, said: “In the implementation of the High Directive issued by Custodian of the Two Holy Mosques King Salman bin Abdulaziz, and His Royal Highness Prince Mohammad Bin Salman, Crown Prince of the Kingdom of Saudi Arabia, we are signing these two agreements today with the Ministry of Economic Affairs and the Central Bank of Pakistan to finance trade in oil derivatives and support Pakistan’s foreign currency reserves, which will contribute to the country’s economic growth and help resolve the adverse repercussions of the COVID-19 pandemic.
“These two agreements come as an extension to the support provided by the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan through the Saudi Fund for Development, whereby the total amount of three grants worth approximately US$333 million, will contribute to the implementation of 23 projects in the fields of education, healthcare, and infrastructure. In addition, SFD provided 20 development loans, amounting to about US$1 billion, to finance projects in the sectors of energy, water, transportation, and infrastructure.”
Through the Saudi Export Program, the Saudi Fund for Development previously provided 12 financing agreements and guaranteed Saudi export amounting to more than US$4.7 billion.
Said Al-Marshad, “As a demonstration of our commitment to sustainable development, we are pleased to cooperate with the Government of Pakistan and with international organizations to secure better living standards for the Pakistani people. We are also committed to helping Pakistan achieve economic growth and prosperity, according to the Government of Pakistan’s development and economic plans.”
It is noteworthy that within the framework of the Kingdom's continuous support of the economy of Pakistan, the country benefited from the debt postponement initiative that the Kingdom contributed to through the G20, whereby the debts of Pakistan were postponed in favor of the Saudi Export Program, amounting to more than 3 billion riyals. The country also benefited from the initiative to postpone the debts owed on the Fund's development loans, which amount to about 152 million riyals.
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