News
28 January 2019
IsDB agrees $4.5bn oil financing facility to Pakistan
In:
Traditional energy
Region:
Asia-Pacific
The Islamic Development Bank (IsDB) is providing a three-year $4.5 billion facility to Pakistan to buy oil, which will ease pressure on the country's balance-of-payments.
The facility was first activated in July 2018 and Pakistan received oil worth $100 million in the first phase under the agreement with IsDB. The deal will enable Pakistan to buy $1.5 billion worth of oil on deferred payment each year for three years. The government is also working with the IsDB for a similar agreement to provide LNG on deferred payments.
The arrangement with the IsDB is in addition to agreement with Saudi Arabia to provide oil worth $3 billion on deferred payments.
