ISLAMABAD: Pakistan has secured Murabaha Financing worth $761.5 million by the International Islamic Trade Finance Corporation (ITFC) for the import of petroleum products on delayed payment on Thursday.
The ITFC, an autonomous entity within the Islamic Development Bank Group (IsDB), agreed to provide Murabaha Financing worth $761.5 million to Pakistan for the import of petroleum products on deferred payment.
Pakistan secured the ITFC financing after successful talks between the Federal Minister for Economic Affairs Omar Ayub Khan and ITFC CEO Hani Salem Sonbol.
According to the Economic Affairs Division, the ITFC Murabaha Financing Facility (US$ 761.5 mil) has been made effective and ready for utilisation by Pakistan State Oil (PSO), Pak-Arab Refinery Company Limited (PARCO) and Pakistan LNG for the import of oil and gas.
It added that the financing is increased from $600 million to $761.5 million due to higher demand amid strong economic recovery.
The ITFC financing will help to ease pressure on the exchange rate and stabilise forex reserves, the economic division said in a statement.
It added that the financing also reflects the confidence of international financial institutions in Pakistan’s economy.
The ITFC and EAD have also agreed to continue their cooperation in future for maximum utilisation of the $4.5 billion financing window.
