Pakistan is set to receive a significant financial boost from the Islamic Development Bank (IsDB) in the form of a $500 million loan to support oil imports. This funding comes as a welcome relief for Pakistan, especially following the expiration of its oil purchase agreement with Saudi Arabia.
The IsDB has committed to providing the loan in tranches throughout the current financial year. The first tranche of $10 million is expected to be disbursed this month, covering oil imports for the first quarter. Subsequent tranches of $150 million and $250 million will be released in the second and third quarters, respectively.
This loan is part of a larger financial package of $3.6 billion pledged by the IsDB to Pakistan at the Geneva Donor Conference last year. The funding demonstrates the IsDB’s continued support for Pakistan’s economic development and its commitment to addressing the country’s energy needs.