ISLAMABAD: Pakistan has utilized $375 million out of $4.5 billion oil financing facility extended by the Saudi-led Islamic Development Bank, officials said, part of a package to support dwindling public finances and avert a balance of payments crisis.
“The facility has been operationalized and Pakistan has already utilized $375 million out of the $4.5 billion,” Dr. Khaqan Hassan Najeeb, spokesman, Ministry of Finance told media. The facility has been extended to Pakistan by the Islamic Trade Finance Corporation, a member of the Islamic Development Bank group, he added.
“The inflows will ease balance of payments pressure,” Dr. Khaqan said.
In October last year, Saudi Arabia agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis that had ballooned to over $18 billion in the last fiscal year.
Pakistan has already received $3 billion of the funds in three tranches and the deferred oil facility was also operationalized in January.
