Pakistan and Saudi Fund for Development in Talks for Collaborative Projects
In a strategic move towards enhancing bilateral cooperation, Pakistan and the Saudi Fund for Development are currently engaged in discussions to work together on various projects spanning across energy, health, education, and infrastructure sectors. This development was confirmed by a senior Pakistan official on Sunday.
The Secretary of Pakistan’s Economic Affairs Division, Kazim Niaz, along with SFD CEO Sultan bin Abdul Rehman Al-Marshad, recently inked two loan agreements totaling $107 million. The funds are earmarked for financing hydropower projects in Azad Kashmir, thereby supporting Pakistan’s endeavors towards achieving energy sustainability and fostering economic growth.
Established as a Saudi government agency, SFD extends development assistance and financial aid to developing nations through a mix of loans and grants. In the past, the fund has contributed significantly by bolstering Pakistan’s foreign exchange reserves and supporting various development initiatives in infrastructure, education, and healthcare.
Speaking to Arab News, Niaz revealed, “We had previously established a framework agreement with SFD. Following the conclusion of the recent Saudi delegation’s visit, we have deliberated on a range of potential projects for future collaboration, with a special focus on energy, health, education, and infrastructure sectors.”
While Niaz refrained from divulging specific details about the proposed projects, he hinted that more information would be shared once Saudi feedback on the list of initiatives presented by Islamabad is received.
“The Saudi delegation is currently evaluating the projects we discussed. Once their assessment is complete, both parties will move forward with formal agreements,” Niaz added.
A Pakistani delegation is scheduled to meet with SFD officials in Riyadh during the Islamic Development Bank’s annual meetings from April 27 to 30 to further discuss collaboration opportunities.
Elaborating on the recently signed loan agreements with SFD, Niaz highlighted that the allocated funds would be utilized for financing two hydropower projects in Azad Jammu and Kashmir.
“SFD will provide $66 million for the 48-megawatt Shounter Hydropower Project and $41 million for the 22-megawatt Jagran-IV Hydropower Project in Neelam Valley District,” he explained, noting that the projects are expected to generate 70 megawatts of electricity to be integrated into the national grid.
Having been a longstanding development partner of Pakistan since its inception in 1974, SFD has been actively involved in supporting various projects related to energy, health, education, and infrastructure. Niaz acknowledged SFD’s significant contributions during the 2022 floods in Pakistan.
Reflecting on the future prospects of collaboration, Niaz expressed optimism, stating, “From our interactions and discussions, I am confident that the future of this partnership holds great promise and potential for both countries.”