ISLAMABAD: Pakistan has succeeded in convincing Saudi Arabia to provide a loan of 131.125 million Saudi riyal for the construction of Jagran-IV Hydropower Project.
In this regard, the Economic Affairs Division (EAD) has written a letter to the Federal Board of Revenue to exempt imports for this project from customs duty.
The letter, signed by EAD Secretary Shaukat Ali, stated that a draft of the loan agreement had been prepared between Pakistan and Saudi Development Fund for the construction of Jagran-IV Hydropower Project and it would be signed by the relevant authorities of the two countries.
The letter stated that in light of the PCD Handling 9903, Chapter 99 of the First Schedule of the Customs Act 1969, the project was excluded from customs duty.
In the letter, the FBR had been requested to send its input on the project to the EAD so that the draft of the agreement for the loan could be finalised.
The EAD authorities told The Express Tribune that Saudi Arabia had expressed eagerness to finance five projects of the water sector with an overall investment of $1.27 billion and a formal memorandum of understanding (MoU) between the two countries was signed during the prime minister’s recent visit to Saudi Arabia.
Of the total funding, 375 million riyals was for Diamer-Bhasha Dam, 300 million riyals for Mohmand Dam, 247.5 million riyals for Shounter Hydropower Project, 153.7 million riyals for Jamshoro Power Plant and 131.125 million riyals for Jagran-IV Hydropower Project.
Sources said the agreements had been prepared in the light of the MoU.
The final draft would be presented before the federal cabinet for approval after which it would be inked by the relevant Pakistani and Saudi Development Fund authorities.
(This news/article originally appeared in The Express Tribune on October 9th, 2019)