Pakistan likely to get oil worth $3.2bn on deferred payments from UAE: sources

ISLAMABAD: Pakistan is likely to get oil worth $3.2 billion on deferred payments from United Arab Emirates this month, sources informed Geo News Friday.

Sources within the Petroleum Division said Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed bin Sultan Al-Nahyan is expected to announce the facility for Pakistan during his visit to the country starting January 6.

They said Pakistan is also likely to get $1.5 billion loan from Islamic Development Bank's International Islamic Trade Finance Corporation (ITFC) for the import of liquefied natural gas (LNG) on deferred payment facility.

Currently, Pakistan is importing LNG worth $4.5 billion annually.

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Pakistan to receive UAE's $3bn in one go, plus oil on credit: sources

The monetary package would comprise cheaper loans and budget support as well oil $3 billion worth on credit for three years

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The sources added that Pakistan, in collaboration with the UAE, is also starting construction of Parco Coastal Refinery in Balochistan worth over $5 billion.

It is pertinent to mention here that Prime Minister Imran Khan had twice visited the UAE last year, where he had held meetings with Emirati leadership.

In December 2018, the UAE announced that it would deposit $3 billion in the State Bank of Pakistan (SBP) to support the country’s financial and monetary policy.

The Abu Dhabi Fund for Development has also financed eight development projects in Pakistan worth a total of AED1.5 billion, including AED931 million in grants. 

The funds covered projects in sectors such as energy, health, education and roads.