First cargo under Saudi oil facility due late March

ISLAMABAD: Amid rising world petroleum prices, the first oil tanker under coveted Saudi Oil Facility (SOF) will arrive in the third week of this month, marking the opertaionalisation of $1.2 billion buy-now-pay-later scheme.

This was revealed in a high-level meeting between Pakistani and Saudi authorities on Wednesday.

According to an official statement Nawaf bin Saeed Al-Malkiy, Ambassador of the Kingdom of Saudi Arabia in Pakistan, and Dr Saud Ayid R Alshammari, Director General of Saudi Development Fund (SFD) called on Omar Ayub Khan, Federal Minister for Economic Affairs.

The economic affairs minister acknowledged the timely operationalisation of the SFO under which Saudi Arabi would provide crude oil to Pakistan on one-year deferred payment.

Under this facility, Pak Arab Refinery Limited (PARCO) and National Refinery Limited (NRL) will import petroleum products up to US$ 100 million/month from Saudi Arabia.

Saudi officials told the meeting that SFD would also finance the construction of Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project (22 MW), Shagarthang Skardu HPP (26 MW), Attaabad, Hunza HPP (32.5 MW), Gravity Flow Water Scheme Mansehra, and Abbottabad- Muzaffarabad Road Project.

Both sides mostly discussed bilateral economic cooperation focusing on oil facility, ongoing development projects, and new initiatives.

The minister lauded the technical and financial support of SFD for socioeconomic development of Pakistan and directed resolution of all the bottlenecks to accelerate implementation of development projects.

Khan said Economic Affairs Division (EAD) was going to implement the triad approach i.e., physical progress verification by satellite in collaboration with SUPARCO, Pakistan’s space agency, financial tracking and use of Gantt Charts for efficient monitoring and smooth implementation of the projects. Saudi ambassador assured the minister of the kingdom’s continued support at all levels for further strengthening the bilateral economic cooperation between the two brotherly countries.

Kingdom of Saudi Arabia was committed to play a much stronger role in the socioeconomic development of Pakistan, the ambassador said.

Earlier, Saudi Fund for Development (SFD) and EAD teams reviewed the progress on 13 Saudi-funded ongoing projects in Pakistan. At present, SFD is providing financial assistance for various development projects in the areas of renewable energy, health, education, infrastructure, and housing.