Saudi Arabia has agreed to place a deposit of US $ 3 billion in Pakistan’s exchequer for a period of one year as balance of payment support as Prime Minister Imran Khan’s two-day visit to Saudi Arabia from October 22-23 resulted in significant understandings between the two Countries (Pakistan-Saudi Arabia agreement).
In this regard, a memorandum of understanding (MoU) was signed between the Finance Minister Asad Umar and his Saudi Counterpart Muhammad Abdullah Al-Jadaan in Riyadh.
The agreement was reached when Prime Minister Imran Khan along with a delegation visited Saudi Arabia to participate in the Future Investment Initiative (FII) Conference at the invitation of the Custodian of the Two Holy Mosques King Salman bin Abdul Aziz.
It was also agreed that a one year deferred payment facility for import of oil, up to US $ 3 billion, will be provided by Saudi Arabia to Pakistan. This arrangement will be in place for three years which will be reviewed thereafter.
During his visit, the prime minister had detailed bilateral discussions with Saudi Salman bin Abdul Aziz, and Crown Prince Muhammad bin Salman.
The crown prince agreed to the prime minister’s suggestion to reduce visa fee for Pakistani workers, which is a significant step towards enhancing Pakistan’s workforce in Saudi Arabia, as well as facilitating travel of people from both Countries.
Pakistan-Saudi Arabia agreement
Besides, far-reaching decisions on bilateral economic and financial cooperation between Pakistan and Saudi Arabia were also agreed.
The earlier visit of the Saudi delegation to Islamabad had evaluated the possibility of investing in a petroleum refinery in Pakistan. Now Saudi Arabia has confirmed its interest in this project, and a MoU will be signed after obtaining Cabinet approval.
In addition, Saudi Arabia also expressed interest in development of mineral resources in Pakistan. For this purpose, the federal government and the Balochistan government will consult, following which a delegation of the Kingdom will be invited to visit Pakistan.
During the visit, the prime minister was accompanied by Minister for Foreign Affairs Shah Mehmood Qureshi, Minister for Finance Asad Umar, Minister for Information Fawad Chaudhry, Advisor to the Prime Minister on Commerce Abdul Razaq Dawood, and Chairman Board of Investment (BOI) Haroon Sharif.
