Islamabad: Saudi Arabia has agreed to finance the construction of Jagran-IV Hydropower Project in Pakistan, a news source reported. It will provide a loan of SAR 131.125 million for the project.
The Economic Affairs Division (EAD) has sent a letter to the Federal Board of Revenue (FBR) requesting to exempt the imports required for the project from customs duty. The letter also stated that both countries have prepared a draft of the loan agreement between them. It added that the relevant authorities from both sides will sign the draft soon.
The letter also requests the FBR to submit its input on the hydropower project to the EAD so that the authorities concerned could finalise the loan agreement draft.
EAD officials have also revealed that Saudi Arabia has expressed its willingness to finance five water sector projects. The country plans to invest a sum of USD 1.27 billion for this purpose. In this regard, both sides also signed a Memorandum of Understanding (MoU) during Prime Minister (PM) Imran Khan’s recent visit to Saudi Arabia. They added that both countries have also prepared agreements according to the MoU signed.
The funding provided by Saudi Arabia will be spent on Diamer-Bhasha Dam, Shounter Hydropower Project, Mohmand Dam, Jamshoro Power Plant, and Jagran-IV Hydropower Project.
The development fund authorities concerned from Pakistan and Saudi Arabia will sign the final draft once the federal cabinet approves it.