Saudi Arabia has agreed to provide a one-billion-dollar investment guarantee to the federal government, which will be used to build a desalination plant in Karachi to address the city’s water supply problems.

Prime Minister Shehbaz Sharif made the announcement at CM House, where he was invited by the Karachi Chamber of Commerce and Industry on Friday to discuss “key issues of the economy” and “suggest measures to meet the current challenges,” which have crippled the country’s financial system and put the newly-formed coalition government at a crossroads.

During his speech, the Prime Minister announced the new development as well as his “successful” talks with Saudi Arabia, which had promised the Pakistani government a one-billion-dollar investment.