SFD Signs Two Agreements with Government of Pakistan to Support Foreign Currency Reserves and Trade in Oil Derivatives

Monday 1443/4/24 - 2021/11/29
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Islamabad, Nov. 29, 2021, SPA -- In implementation of Royal Directives aimed at supporting the economic growth of the Islamic Republic of Pakistan, and on behalf of Ahmed bin Aqeel Al-Khateeb, Chairman of the Board of Directors of the Saudi Fund for Development (SFD), two economic agreements amounting to US$4.2 billion were signed with the Pakistani Government.
The first agreement, including a US$3 billion deposit provided by the Kingdom of Saudi Arabia for the Central Bank of Pakistan, will help support the country’s foreign currency reserves and mitigate the adverse effects of the COVID-19 pandemic. The agreement was signed at the headquarters of the Central Bank in Karachi by Reza Baqer, Governor of the Central Bank of Pakistan, and Sultan bin Abdulrahman Al-Marshad, the CEO of SFD, in the presence of the Consul General of the Kingdom in Karachi Bandar bin Fahad Al-Dayel.
The second agreement to finance trade of oil derivatives with a value of US$1.2 billion for one year to Pakistan, was signed at the headquarters of the Ministry of Economic Affairs in Islamabad by Omar Ayub Khan, Minister for Economic Affairs of Pakistan, in the presence of the CEO of SFD as well as Nawaf bin Said Al-Malki, the Ambassador of the Kingdom of Saudi Arabia to Pakistan.
In remarks on the occasion, Al-Marshad said: "In implementation of the Royal Directive issued by Custodian of the Two Holy Mosques King Salman bin Abdulaziz, and His Royal Highness Prince Mohammed bin Salman, the Crown Prince, we are signing these two agreements today with the Ministry of Economic Affairs and the Central Bank of Pakistan to finance trade in oil derivatives and support Pakistan’s foreign currency reserves, which will contribute to the country’s economic growth and help resolve the adverse repercussions of the COVID-19 pandemic".
"These two agreements come as an extension of the support provided by the Kingdom of Saudi Arabia for the Islamic Republic of Pakistan through the Saudi Fund for Development, whereby the total amount of three grants worth approximately US$333 million, will contribute to the implementation of 23 projects in the fields of education, healthcare, and infrastructure. In addition, SFD provided 20 development loans, amounting to about US$1 billion, to finance projects in the sectors of energy, water, transportation, and infrastructure", Al-Marshad added.
For his part, and on behalf of the Pakistani government and people the Pakistani Minister of Economy thanked the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince, and the government and people of the Kingdom of Saudi Arabia for the economic support provided by SFD, explaining that this support will help Pakistan in improving its economy.
--SPA
21:29 LOCAL TIME 18:29 GMT
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