Pakistan will get $500 million from Islamic Bank to purchase crude oil

Pakistan has secured a $500 million loan from the Islamic Development Bank (IDB) to purchase crude oil from the international market. The loan will be provided in installments throughout the fiscal year 2024-25.

The Nation has reported that Pakistan will receive $100 million from the IDB in the first quarter of FY2024-25, followed by $150 million in the second quarter. The remaining $25 million will be distributed equally in the third and fourth quarters of the fiscal year.

It may be recalled that Pakistan was assured of $3.6 billion by the IDB at the Geneva Donor Conference held last year.

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

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

IG Markets analyst Tony Sycamore said that the rise in oil prices to improve US economic data from last week, which raised concerns about a potential US recession. Additionally, geopolitical tensions in the Middle East have contributed to the rising pressure on oil prices.