JEDDAH: Saudi Arabia is keen to invest in development projects in Pakistan. The Saudi Fund for Development (SFD) is currently in discussions with Islamabad over a grant of SR375 million ($100 million) to help internally displaced people in the country’s northern region.
The grant will be administered through the offices of the United Nations in Pakistan, the Saudi Embassy in Islamabad has said in a statement.
SFD, the government body that administers loans to developing countries, is currently studying viable development projects in Pakistan.
SFD delegations have visited the South Asian country to evaluate the progress of projects. “The Kingdom is always keen to extend all avenues of help and assistance to the brotherly Islamic Republic of Pakistan in various fields,” says the embassy.
The Saudi government has already donated $133 million for the reconstruction of earthquake-hit regions and the construction of government buildings, official residences, health units and schools. The money has also been used to refurbish a college and hospital and construct a university in Azad Kashmir.
SFD has loaned $40 million for a power generation project in the north of the country, $80 million toward a power generation plant at Neelum Jhelum and $100 million for Saudi fertilizer exports to Pakistan.
Saudi Arabia has also supported the State Bank of Pakistan through a $200 million deposit.
Meanwhile, the National Bank of Pakistan is all set to open its branch in Saudi Arabia. It will be the first bank from the OIC member nations to set up a branch in the Kingdom.
Saudi Arabia and Pakistan have maintained strong business ties, with the Kingdom among the top 15 major export destinations for Pakistani goods. A free trade agreement between the Gulf Cooperation Council (GCC) and Pakistan is to be signed in coming weeks.
This is likely to almost double the current annual Saudi-Pakistan bilateral trade figure of $456 million by the end of the year, Pakistani ambassador in Riyadh Omar Khan Ali Sherzai has claimed.
