ISLAMABAD: Pakistan is set to receive a $500 million loan from the Islamic Development Bank (IDB) to buy crude oil from the international market, according to sources from the planning affairs division, ARY News reported on Monday.
The loan will be disbursed in installments during the fiscal year 2024-25. Pakistan will receive $100 million in the first quarter, $150 million in the second, and $25 million in both the third and fourth quarters.
This move comes after Pakistan’s agreement with Saudi Arabia for oil purchases on deferred payments ended. The IDB had previously assured Pakistan of $3.60 billion in assistance during the Geneva Donor’s Conference.
In related news, global oil prices continued to rise for the fifth straight session on Monday. Brent crude futures reached $79.94 per barrel, and US West Texas Intermediate crude futures hit $77.26, driven by easing recession fears in the US and ongoing geopolitical tensions in the Middle East.