Pakistan and Saudi Arabia have agreed to make functional a $1.2 billion Saudi oil facility “at the earliest,” as both countries make efforts to further boost ties.

The consensus was reached during a meeting between Saudi Arabia Ambassador Nawaf bin Saeed Al-Malki and Economic Affairs Minister Omar Ayub in Islamabad, read a statement issued on Thursday.

Both sides discussed ongoing development projects and new initiatives. The minister appreciated Saudi support in areas where development was priority.

“During the meeting, it was agreed to operationalize the Saudi Oil Facility at the earliest. The financing agreement worth US$1.2 billion for import for petroleum products was signed on 29 of November 2021 between the Saudi Fund for Development and Economic Affairs Division, Pakistan,” it read.

As per the Agreement, SFD would extend the financing facility up to $100 million per month for one year for the purchase of petroleum products on a deferred payment basis. They also discussed the remaining work of development projects in the earthquake-affected areas of Azad Jammu and Kashmir and Khyber Pakhtunkhwa.

“The SFD is providing financial assistance for various development projects in the areas of energy, health, education and infrastructure,” it read, adding that recently, the SFD has committed to financing Mohmand Dam project, Shounter hydropower project, Jagran-IV hydropower project, Gravity Flow Water Scheme Mansehra, and Abbottabad-Muzaffarabad road project.

The Saudi Ambassador assured the minister of continued support at all levels to further strengthen bilateral economic cooperation between the two brotherly countries. The Saudi Ambassador expressed that the Kingdom of Saudi Arabia was committed to playing a “much stronger role in the socio-economic development of Pakistan.”