ISLAMABAD: The Islamic Development Bank (IDB) will provide a three-year $4.5 billion oil financing facility to Pakistan, the finance ministry announced on Saturday.
The IDB had activated the facility for Pakistan in July 2018 and, according to a finance ministry spokesperson, the financial institution would provide Pakistan $1.5 billion worth of oil on deferred payment each year.
The spokesperson added that oil worth $100 million have already been received in the first phase of the assistance programme, with $270 million worth of supplies scheduled for the second phase.
IDB activates $4.5b credit facility for Pakistan’s oil imports
The finance ministry official also hinted at a similar deal with the IDB for the supply of Liquefied Natural Gas (LNG), stating that talks were underway to finalise an agreement in this regard.
Assistance from friendly countries
The ministry further said that oil supply agreements with Saudi Arabia have been formalised and Pakistan would be able to avail oil on deferred payments from Riyadh starting mid-February.
The official added that discussions are being held to iron out a similar facility with the United Arab Emirates (UAE).
Pakistan receives last tranche of Saudi Arabia's $3b aid package
The development comes a day after the State Bank of Pakistan received the last tranche of $1 billion from Saudi Arabia.
The inflow marked back-to-back receipt of $1 billion deposits in SBP foreign currency reserves for the second successive day, under the friendly countries’ economic assistance package.
On Thursday, UAE deposited $1 billion under its recently announced $3 billion cash programme for Pakistan.
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