IDB to lend oil worth $4.5bn to Pakistan

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IDB to lend oil worth $4.5bn to Pakistan

ISLAMABAD: The Ministry of Finance spokesperson on Jan 26 said the Islamic Development Bank (IDB) will lend oil worth $4.5 billion to Pakistan.

It is pertinent to note that IDB is backed by Saudi Arabia.

“The oil will be lent in three installments of $1.5 billion each every year,” added the spokesperson. “IDB will lend Pakistan oil worth $4.5 billion over three years.”

He added that oil worth $100 million had already been received and oil worth $270 million will be lent in the second phase. “We are also in talks with IDB regarding lending liquefied natural gas.”

The spokesperson also shared that Pakistan will start receiving Saudi Arabian oil from mid-February as talks with the Kingdom pertaining to lending oil have been finalised. “There has been headway in talks with United Arab Emirates regarding lending oil.”

On Jan 18, Saudi Energy Minister Khalid Al-Falih said Saudi Arabia plans to build an oil refinery and a petrochemicals plant in South Africa as part of $10 billion of investments in the country.

Saudi oil would be used in the planned refinery whose construction would be led by state energy company Saudi Aramco, Al-Falih had said in comments following a meeting with South African Energy Minister Jeff Radebe in Pretoria.

“There have been exchanges of talks by Saudi Aramco teams and they have been supported by the South African energy ministry,” Al-Falih had stated. “The exact location of the refinery and petrochemicals plant will be finalised in the coming weeks.”

He had added that Saudi Arabia was also interested in using South Africa’s major oil storage facilities, adding that Saudi utility developer Acwa Power was looking at investing in South Africa’s revamped renewable energy programme. – NNI