On February 3, 2025, Pakistan signed an agreement with the Saudi Fund for Development (SFD) to defer a $1.2 billion payment for oil imports by one year. This arrangement aims to alleviate immediate fiscal pressures and bolster Pakistan’s economic resilience. Prime Minister Shehbaz Sharif, who witnessed the signing ceremony, welcomed the oil import financing facility, noting that it would secure a stable supply of petroleum products while reducing immediate fiscal burdens.
In addition to the oil payment deferral, the SFD agreed to provide $41 million for a water supply scheme in Khyber Pakhtunkhwa, which will benefit approximately 150,000 people by improving access to clean drinking water.
This collaboration underscores the strong economic ties between Pakistan and Saudi Arabia, with the SFD’s support playing a significant role in financing energy, water, transportation, and infrastructure projects in Pakistan.Â
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