Pak to receive USD 4.5 billion oil financing facility from Islamic Development Bank

Cash-strapped Pakistan said on Saturday that the Islamic Development Bank (IDB) was providing it a three-year USD 4.5 billion oil financing facility, which will ease pressure on its balance-of-payments.

The finance ministry said that USD 1.5 billion worth of oil on deferred payment each year by the bank had been agreed. The program will continue for three years.

The facility was already activated in July 2018 and the ministry said Pakistan received oil worth USD 100 million in the first phase under the agreement with IDB.

Pakistan is also negotiating a USD 8 billion bailout package from the International Monetary Fund (IMF) to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy.

The government reached out to some "friendly countries" for economic assistance including Saudi Arabia, China and the UAE since Prime Minister Khan assumed office in August and has received financial help to a great extent.

The government was also working with the IDB ..