ECONOMY

Islamic bank to lend Pakistan oil worth $4.5 billion

The Islamic Development Bank will lend oil worth $4.5 billion to Pakistan under its Islamic Trade Finance Corporation program, officials said.

"The agreement between Pakistan and the Islamic Development Bank under its International Islamic Trade Finance Corporation already finalized and they will lend oil worth $4.5 billion to Pakistan in three years," Khaqan Najeeb, advisor and spokesman for the Ministry of Finance, 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 Islamic Development Bank to lend Liquefied Natural Gas (LNG) under the same program, the spokesman added.

On Friday, Pakistan State Bank said that the country has received $1 billion, third and last tranche from Saudi Arabia under its balance of payment support for Islamabad.

In Oct. 2018, the Kingdom pledged $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 visit to Saudi Arabia.

Saudi Arabia has also plan to establish a $10 billion oil refinery in Pakistan's southwestern strategic port city of Gwadar.

The agreement between both country is likely to be signed during a proposed visit of Saudi Crown Prince Mohammed Bin Salman to Pakistan in February.

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