Pakistan managed to avail the Islamic Development Bank loan of over $550 million regarding Liquefied Natural Gas and oil import.
Regarding LNG and oil import, Pakistan got the $551 million IDB loan that’ll create positive impact on foreign exchange reserves.
According to sources, Libor or London Interbank Offered Rate plus 2.22%, which at the current Libor rate translates into 4.96%, making it a relatively expensive deal. The loan has been obtained from the International Islamic Trade Finance Corporation (ITFC), the trade arm of the IDB which extends credit for the import of oil and LNG.
Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh witnessed the signing ceremony. This facility will be utilised by Pakistan State Oil Company Limited (PSO), Pak-Arab Refinery Limited (Parco) and Pakistan LNG Limited (PLL).
However, the agreement was signed by the Economic Affairs Division, ITFC and representatives of PSO, Parco and PLL. It offers trade financing amounting to $551 million for the import of oil and LNG for a period of one year.