RIYADH, 16 July 2006 — Saudi Arabia has pledged to give Pakistan $133 million for the reconstruction of earthquake-affected areas in Azad Kashmir and the North West Frontier Province (NWFP).
A Memorandum of Understanding (MOU) for the grant was signed on Wednesday in Islamabad between Yousef Al-Bassam, vice chairman and managing director of the Saudi Fund for Development (SFD), on behalf of the Saudi government and Khalid Saeed, secretary of the Economic Affairs Division (EAD), on behalf of Pakistan.
“We gratefully acknowledge this gesture by Saudi Arabia, a country which has always come forward to help Pakistan at times of distress,” said retired Adm. Shahid Karimullah, Pakistan’s Ambassador in Riyadh, pointing out that the Kingdom has helped Islamabad on several previous occasions.
“This shows the close cooperation and sincere fraternal and cultural relationship that has been existing between our two countries from time immemorial,” he said.
Al-Bassam, who arrived in Riyadh on Friday after signing the agreement, said the accord showed Saudi Arabia’s total commitment to Pakistan and its people in supporting their efforts to rebuild earthquake torn areas.
This grant is being made in addition to what the SFD had pledged in the International Donor Conference held in Islamabad on Nov. 19, 2005.
At that time SFD pledged $320 million in concessionary loans for a development program in Pakistan as well as sending non-oil Saudi products such as building materials and agricultural goods.
The grant is meant to finance the rehabilitation and reconstruction of houses, hospitals and health units, schools and universities in the affected areas of the earthquake.
Under the agreement, the money would be utilized in the reconstruction of the Azad Kashmir University, government offices and residences in the Rawalakot and Bagh districts, other education institutes in Azad Kashmir, hospitals and health units at the District Headquarter Hospital in Manshera and also the Ayub Medical College and Hospital Complex in Abbottabad.
Since the commencement of its activities in Pakistan, SFD had advanced loans amounting to SR1.26 billion for the financing of various development projects throughout Pakistan. Secretary of EAD Khalid Saeed thanked the Saudi government for its support of Pakistan in the reconstruction of earthquake-hit areas.
