Arab News, Tue, Mar 26, 2024 | Ramadan 16, 1445
Saudi Fund for Development in talks with Pakistan to collaborate on uplift projects
Saudi Arabia:
The Saudi Fund for Development is in talks with Pakistan to collaborate on
several projects across various sectors such as energy, health, education and
infrastructure, a top Pakistan official said on Sunday.
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 worth $107 million last week to finance
hydropower projects in Azad Kashmir, supporting Pakistan’s efforts toward energy
sustainability and economic growth.
“We already had a framework agreement with SFD. As
the Saudi delegation concluded its visit (on Sunday), we have discussed a
pipeline of numerous projects for future cooperation, in which they have shown
keen interest,” Niaz told Arab News.
“These projects are in the energy, health,
education and infrastructure sectors.”
Niaz did not provide more details on the projects,
which he said would be shared after Saudi feedback on a list of initiatives
shared by Islamabad for investment and cooperation.
“They (Saudis) have taken these projects with them
for examination and analysis,” the bureaucrat added. “Once their analysis is
complete, both sides will proceed with signing.”
The Saudi fund provides development assistance and
financial aid to developing countries through loans and grants. In the past, it
has deposited money in Pakistan’s central bank to bolster foreign exchange
reserves and funded various development projects in infrastructure, education,
and healthcare.
A Pakistani delegation will hold meeting with SFD
officials in Riyadh on the sidelines of the annual meetings of the Islamic
Development Bank from April 27-30.
On the loan agreements signed with SFD during its
March 22-24 visit to Pakistan, Niaz said they would be used to fund two
hydropower projects in Azad Jammu and Kashmir.
“SFD will finance $66 million for 48MW Shounter
Hydropower Project and $41 million for 22MW Jagran-IV Hydropower Project in the
Neelam Valley District,” he said, adding that the projects would generate 70 MW
of electricity, which would be transmitted to the national grid.
SFD has been one of Pakistan’s leading development
partners since its establishment in 1974.
“They are providing assistance in energy, health,
education, and infrastructure projects and have really played a significant part
with their support for the floods in 2022,” Niaz said.
“From our engagements and discussions,” the top
official said, “I can say that the future of this cooperation and collaboration
is very bright and encouraging.”