$2bn MoUs expected as high-level Saudi delegation arrives in Pakistan

• Saudi minister to address business forum during visit.
  
• Agreements and MOUs to be signed in various fields.
  
• Companies from various sectors part of delegation.

ISLAMABAD: A high-level Saudi business and investment delegation has arrived in Pakistan amid expectations that Riyadh and Islamabad will ink bilateral agreements worth $2 billion.

The delegation led by Saudi Arabia's Minister of Investment Khalid Al-Falih arrived in Pakistan ahead of the Shanghai Cooperation Organisation (SCO) summit in Islamabad later this month.

Energy Minister Musadik Malik, Commerce Minister Jam Kamal Khan and Privatisation Minister Abdul Aleem Khan received the delegation at the Noor Khan Airbase.

According to the schedule, the Saudi delegation will hold business-to-business meetings with Pakistani companies, and several agreements will be signed during the visit.

Saudi companies from various sectors including construction, engineering, financial services, IT, hospitality, agriculture, food, energy, and petroleum are part of the visiting delegation.

The Saudi investment minister will address a business forum at a local hotel in Islamabad as well as hold talks with senior leadership of Pakistan's private sector.

A day earlier, Prime Minister Shehbaz Sharif said that "Pakistan is expected to sign agreements and MoUs worth $2 billion with Saudi Arabia" in various sectors during the upcoming visit.

The administration has also secured a commitment of foreign loans amounting to $3.2 billion from international creditors including Saudi Oil Facility (SOF) of $1.2 billion for the next 12 months.

The loan pledges include $1.2 billion loan facility promised by Saudi Arabia, $1 billion in commercial loans from Dubai Islamic Bank (DIB), $600 million from SCB, and approximately $430 million from Islamic Development Bank's International Islamic Trade Finance Corporation (ITFC) facility.

The development comes after the approval of a $7 billion new loan programme by the International Monetary Fund's (IMF) Executive Board last month which was subsequently followed by the receipt of first tranche of $1.03 billion (SDR 760 million).