Pakistan, Saudi Arabia to ink loan deal

As Pakistan and Saudi Arabia seek to revive bilateral ties after passing through a difficult time, the duo is set to sign a memorandum of understanding (MoU) for a $500 million loan during next week’s visit to Prime Minister Imran Khan.

A comprehensive discussion focused on the will be carried out on an oil refinery project but no immediate breakthrough on the $5-7 billion scheme is expected. “Pakistan will be sharing a new oil refinery policy with the kingdom”, says PM’s aide.

An official of the Economic Affairs Ministry reported that this week, prior to the prime minister’s visit, the signing of a framework Mou between Pakistan and the Saudia Fund for Development was approved by the federal cabinet.

Under the Mou, the Saudi Fund for Development will provide long-term concessionary financing of $500 million for the Mohmand dam and hydropower project, Jagran hydropower project, Shounter hydropower project, Jamshoro power generation project, Mansehra water supply project, and Abbottabad-Muzaffarabad road project.

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