ISLAMABAD: Following confirmation to the IMF regarding an oil facility, Saudi Arabia is set to send a high-level delegation to Pakistan in December 2024 to finalize details for a $1.2 billion Saudi Oil Facility (SOF). This facility will support Pakistan’s bid for a $7 billion Extended Fund Facility (EFF) from the IMF, with Pakistan also requesting an additional $1 billion for climate finance.
According to top officials, Pakistan may propose a one-year deferred payment plan, involving $100 million monthly disbursements, with repayments starting in the following calendar year. The SOF could potentially be extended to a three-year period, although details are yet to be confirmed.
In 2023, Saudi Arabia’s Saudi Fund for Development (SFD) provided extensive financial support to Pakistan’s infrastructure projects, including 901.25 million Saudi Riyals (SR) for the Mohmand Dam Hydropower Project, which is set to enhance Pakistan’s energy and water resources, mitigate flood risks, and address climate change. Other SFD contributions included 178.28 million SR for Tarbela Dam repairs and 231.5 million SR for Indus River irrigation and drainage projects. Additionally, the Kingdom contributed to projects like the Neelum-Jhelum Hydropower Plant, Makran Coastal Highway, and the Golen Gol Hydropower Plant, with cumulative grants totaling 3.49 billion SR for various development initiatives across Pakistan.
Story by Mehtab Haider
