Islamabad (TDI): Saudi Arabia has pledged continued support for Pakistan’s development as the two countries signed consultancy service contracts on Friday for major health and energy projects worth $121 million.
At the signing ceremony, Saudi Ambassador Nawaf bin Said Al-Malki reiterated Riyadh’s commitment to Pakistan’s progress, saying the projects would deliver essential services, strengthen the economy, and improve the quality of life for its people.
The Saudi Fund for Development (SFD) will finance three initiatives: the King Salman Hospital in Tarlai near Islamabad, and the Shounter and Jagran hydropower projects in Azad Jammu & Kashmir.
According to the agreement, the King Salman Hospital will be funded through a $20 million Saudi grant, while the two hydropower projects will receive concessional loans of $66 million and $35 million.
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The new agreements add to a long history of Saudi assistance to Pakistan, ranging from large-scale infrastructure development to emergency relief during natural disasters.
In recent years, Riyadh has also provided vital support for Pakistan’s balance of payments and energy sector.
Analysts say the latest projects reflect a broader strategy to expand cooperation beyond traditional areas, deepening people-centered initiatives in health and renewable energy.
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The focus on hydropower, in particular, aligns with Pakistan’s urgent need for sustainable energy sources to tackle chronic electricity shortages.
Officials in Islamabad believe that the Saudi partnership under the SFD framework will not only improve local services but also help generate employment, boost regional development, and reinforce the “strategic brotherly ties” between the two countries.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
