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A $15 million financing agreement was signed between the Saudi Export-Import Bank and Bank Alfalah of Pakistan. The purpose of the agreement is to strengthen economic and commercial links between the two countries and to increase access to Pakistani markets for exporters from the Kingdom of Saudi Arabia.
The Saudi Press Agency stated that the new credit line pact aims to develop new trade opportunities between the two nations and enhance the competitiveness and flow of non-oil exports from the Kingdom.
Purpose of Trade Deal
The move is in line with Pakistan’s goals of expanding economic and investment relations with Saudi Arabia, as the Saudi government reiterated in September its intention to expedite a $5 billion investment package for Pakistan, an Asian nation.
In line with Vision 2030, Saudi EXIM aims to diversify the Kingdom’s economy by providing finance and insurance products for exports other than oil.
According to Abdul Latif bin Saud Al-Ghaith, General Director of the Finance Department at Saudi EXIM Bank, “The agreement comes within the bank’s efforts to strengthen strategic relations with international banks and financial institutions to provide financing solutions that contribute to the development of Saudi non-oil exports and enhance their competitiveness in Pakistani markets.” This will encourage Pakistani importers to purchase Saudi products and services, which in turn creates more investment and trade opportunities between the two countries.
Alignment with Broader Goals
“The agreement between Saudi EXIM Bank and Bank Alfalah Ltd. is a milestone in strengthening trade relations between the Kingdom and Pakistan,” stated Farooq Ahmed Khan, Group Head of Corporate, Investment Banking, and International Business at Bank Alfalah.
“The financing line will enable Pakistani companies to access high-quality products in the Kingdom and will enhance the volume of trade exchange between the two countries,” he added.
“We at Bank Alfalah are proud to play a pivotal role in promoting trade and investment opportunities that are in line with the shared vision to strengthen and grow the economies of both countries.”
After the signing of nearly two dozen partnerships with companies from both countries in October, Saudi businessmen expressed optimism for successful collaborations in Pakistan, claiming that the country’s economic stability and strengthened regulatory environment had made it an appealing investment destination.
