Saudi Arabia would be giving $16 million in grants to Pakistan for the betterment of the health, education and infrastructure sectors of Pakistan.
The Saudi Fund for Development (SFD) delegation under the supervision of chairman of the board of directors—Ahmad Agil F Al-Khateeb gave a visit to Pakistan on Thursday and inked three finance deals.
The officials informed that the SFD would be providing a grant of $16 million for the making of Lohar Gali Road Tunnel (1.7 km) on Muzaffarabad-Abbottabad Road, construction of the infrastructure of the Malakand Region Project (KPK and FATA) and the remaking programme of the earthquake affected areas in AJK and KPK.
The officials further said that the proposal for the making of Lohar Gali Road Tunnel (!.7 km) on Muzaffarabad-Abbottabad Road was discussed during the visit of Pakistani delegation on the 1st of September 2015.
The Lohar Gali Road is a vital link between AJK and KPK, but it is facing hurdles to traffic flow owing to the frequent land sliding. For overcoming this traffic hindrance, the probability of a road tunnel has been searched via a detailed feasibility study.
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The concept proposal of the above-mentioned project, costing Rs 2971 million has been passed by the Azad Kashmir Development Working Party (AKDWP) forum in its meeting scheduled on the 30th of July 2015.
The project targets at the development and reconstruction of AJK university, residential buildings, health units, government offices, educational institutions and hospitals in the province of Khyber Pakhtunkhwa.
Three projects of AJK out of six have been completed whereas three are under completion whereas ten projects of KPK have been completed out of twenty-four, nine are almost complete and five are under completion.
Currently, Pakistan is having problems in foreign reserves as State Bank of Pakistan (SBP) figures indicate that Pakistan Foreign reserves are recorded at $9 billion until the 19th of September 2018. Pakistan has to pay around $9 billion in the present financial year.
The overall loan received by Pakistan by the International creditors is $716 million in the initial two months of the present financial year.
Pakistan has also got grants of $103 from different nations like UK, Japan, IBRD, ABD and USA.