In a major development, the federal cabinet on Friday approved tax exemption for Saudi-funded projects in Pakistan.
Pakistan and Saudi Arabia have settled their loan concerns, under which Islamabad has accepted Saudi conditions of exempting taxes on Riyadh-backed projects in Pakistan.
According to the sources, both countries will sign the agreements with the signing ceremony likely to take place during the Saudi crown prince’s visit to Pakistan.
Saudi Arabia has decided to grant Pakistan $382 million for four projects in exchange for tax exemption.
The projects include $3.5 million for Jagran-IV hydropower project in scenic Neelum Valley; $240 million for Mohmand Dam project; gravity flow water Mansehra project and others.
