Cabinet okays tax exemption for Saudi-funded projects

ISLAMABAD: The federal cabinet on Friday approved tax exemption for Saudi-funded projects in Pakistan.

According to details, Pakistan and Saudi Arabia have settled their loan concerns, under which Islamabad has accepted Saudi conditions of tax exemption on Riyadh-backed projects in Pakistan.

The sources informed that both the countries will sign agreements during a ceremony likely to be held 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 and gravity flow water Mansehra project and others.