ISLAMABAD – Pakistan secures yet another economic lifeline worth $4.5billion from the Islamic Development Bank.
The IDB had activated its three-year $4.5 billion oil financing facilityfor Pakistan in July last year. The International Islamic Trade FinanceCorporation (ITFC), a member of the IDB Group, would roll over the $4.5billion loan to Pakistan in next three year – $1.5 billion in each fiscalyear.
Pakistan had already utilised $100 million received from the ITFC andanother $279 million is in the pipeline which would be received in next fewdays.
He further informed that upcoming inflow would ease the pressure on thecurrent account deficit of the country. He clarified that IDB’s oilfacility is separate from the own announced by the Saudi Arabia recently.
Talks are underway with Saudi Arabia for provision of a one-year deferredpayment facility for the import of oil worth up to $3 billion, Dr Najeebsaid. It is part of a $6 billion assistance package Saudi Arabia hadannounced for Pakistan in October 2018.
The other $3 billion comprised cash deposits in the account of State Bankof Pakistan which has already been received in three instalments of $1billion each over last three months. The loan given at 3.18 percent returnhas helped build country’s dwindling foreign exchange reserves.
Pakistan would start receiving oil on defer payment from Saudi Arabia fromnext month (February), which would further reduce the pressure on importsbill and foreign exchange reserves.
The UAE had also announced to despite $3 billion in SBP’s account in threeinstalments. Pakistan has already received one instalment of $1 billion andthe other two tranches are expected in next two months (February and March).