The Islamic Development Bank (IDB) has recently announced that it will offer around $140 million loan to Pakistan for renovation and improvement of railways and rail system in the country.

According to the statement released, the deal between Pakistan and IDB reached at the bank's head office in Jeddah.

Moreover, the deal allows Pakistan to acquire equipments as an agent for and on behalf of the bank and the sale thereof to the country for use in the country's railways development projects.

Meanwhile, the deal was inked by the Pakistan Ambassador in Saudi Arabia Umar Khan A Sherzai on behalf of Pak government while IDB President Dr Ahmed Ali signed on behalf of the IDB.

While talking to reporters, the Pak Ambassador said, "The bank has been instrumental for gearing up progress and development in the Islamic world."

The ambassador praised the role played by the bank and the OIC for fostering Muslim unity.

The IDB president said, "Pakistan was an important Muslim country and he wishes it to prosper and progress."