Saudi Fund for Development and Pakistan in Talks for Collaboration on Multiple Projects
In an exciting development, the Saudi Fund for Development (SFD) is currently engaged in discussions with Pakistan for potential collaboration on a range of projects spanning energy, health, education, and infrastructure sectors. This collaboration aims to further strengthen the ties between the two nations and drive sustainable development in Pakistan.
During a recent visit, the Secretary of Pakistan’s Economic Affairs Division, Kazim Niaz, and SFD Chief Executive Officer Sultan bin Abdul Rehman Al-Marshad signed two loan agreements totaling $107 million. These agreements will fund hydropower projects in Azad Kashmir, supporting Pakistan’s quest for energy sustainability and economic growth.
Niaz expressed optimism about the future collaboration, stating, “We already had a framework agreement with SFD. As the Saudi delegation concluded its visit, we have discussed a pipeline of numerous projects for future cooperation, in which they have shown keen interest.”
While specific details of the projects were not disclosed, Niaz mentioned that Saudi feedback on a list of initiatives proposed by Islamabad for investment and cooperation would shape the future course of action.
The Saudi fund, known for providing development assistance to developing countries through loans and grants, has been a key partner for Pakistan in various sectors. Past collaborations have included bolstering foreign exchange reserves and funding infrastructure, education, and healthcare projects.
Looking ahead, a Pakistani delegation is set to meet with SFD officials in Riyadh during the annual meetings of the Islamic Development Bank from April 27-30, further solidifying the partnership between the two nations.
Regarding the recent loan agreements, Niaz highlighted that the funds would be utilized for two hydropower projects in Azad Jammu and Kashmir. The projects, including the Shounter Hydropower Project and Jagran-IV Hydropower Project, are expected to generate 70 MW of electricity for the national grid.
Reflecting on the longstanding partnership between SFD and Pakistan, Niaz emphasized the fund’s crucial role in supporting the country during challenging times, such as the floods in 2022. He expressed confidence in the bright and promising future of cooperation between the two nations, citing ongoing discussions and engagements as a testament to the strong bond between Saudi Arabia and Pakistan.