'Pakistan to get $500 mln loan from IDB to buy crude oil'

ISLAMABAD: Pakistan to get $500 million loan from the Islamic Development Bank (IDB) for buying crude oil from the international market, ARY News reported on Monday, quoting planning affairs division sources. 

As per details shared by the sources, the loan will be provided to Pakistan in installments during FY2024-25.

They further said Pakistan will be receiving $100 mln from the IDB during the first quarter of FY2024-25, while $150 mln in the second and $25 mln in the third and fourth quarters of FY2024-25.

Pakistan moved to the IDB after ending of agreement with Saudi Arabia for oil purchases on deferred payments, the sources said.

It is to be noted that Islamic Development Bank (IDB) assured Pakistan of $3.60 bln during Geneva Donor’s Conference.

Read more: Kuwaiti oil price rises by $1.45 per barrel, reaching $78.20

Meanwhile, oil prices rose for a fifth consecutive session on Monday, extending gains from last week’s more than 3% rise, as US recession fears eased while geopolitical tensions in the Middle East supported prices.

Brent crude futures climbed 28 cents, or 0.4%, to $79.94 a barrel by 0635 GMT, while US West Texas Intermediate crude futures rose 42 cents, or 0.6%, to $77.26.

“Support is coming from last week’s better-than-expected US data which eased fears of a US recession,” IG markets analyst Tony Sycamore said.