Islamic bank to lend Pakistan oil worth $4.5 billion

Published 28.01.2019 00:25

The Islamic Development Bank (IDB) will lend oil worth $4.5 billion to Pakistan under its Islamic Trade Finance Corporation program, the country's officials said.

"The agreement between Pakistan and the IDB under its International Islamic Trade Finance Corporation has been finalized and it will lend oil worth $4.5 billion to Pakistan over a three-year period," Khaqan Najeeb, adviser and spokesman for Pakistan's Finance Ministry, told Anadolu Agency.

"Now the agreement has been operationalized and we have received oil worth $100 million in the first phase," Najeeb said.

Pakistan is also in talks with the IDB to borrow Liquefied Natural Gas (LNG) under the same program, the spokesman added. On Friday, the State Bank of Pakistan said that the country has received $1 billion, the third and last tranche from Saudi Arabia under its balance of payment support for Islamabad.

In Oct. 2018, the Kingdom pledged a $6-billion bailout package for Pakistan; $3-billion balance of payments support and other $3 billion in deferred payment on oil imports, after Pakistani premier Imran Khan's visit to Saudi Arabia.

Saudi Arabia also plans to establish a $10-billion oil refinery in Pakistan's southwestern strategic port city of Gwadar. An agreement to that end is likely to be signed during a proposed visit of the Saudi Crown Prince Mohammed bin Salman to Pakistan in February.

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