Pakistan likely to get credit facility worth $1.5 billion from yet another source

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Pakistan likely to get credit facility worth $1.5 billion from yet another source

ISLAMABAD - Saudi-based International Islamic Trade Finance Corporation (ITFC) is likely to extend $1.5 billion in annual credit facility for LNG imports to Pakidtan, sources have revealed.

Moreover the negotiations have matured and during the UAE Crown Prince’s visit a $3.2 billion oil credit facility for Pakistan will be announced akin to the one extended by Saudi Arabia last October.

UAE in December had announced its intention to deposit $3 billion in the State Bank of Pakistan (SBP) to shore up the country’s foreign exchange reserves and prevent an economic crisis.

Pakistan is expecting to receive $9 billion in credit facilities for LNG and oil imports from Saudi Arabia , UAE , ITFC and Qatar to pay its rising import bills.

The country’s yearly oil imports are projected at $12.5 billion and approximately half of it would be financed through the credit facilities from Middle East countries.

And Pakistan’s annual LNG import bill stands between $4.2 to $4.5 billion. At present Pakistan imports eight LNG cargoes a month from which five are imported from Qatar and the rest from Geneva-based commodity trading firm Gunvor and Italian oil and gas company ENI.

Economy