Pakistan secures $761.5 mln Murabaha Financing by ITFC

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 deferred payment, ARY News reported 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 discussions between the Federal Minister for Economic Affairs Omar Ayub Khan and ITFC CEO Hani Salem Sonbol.

According to the Economic Affairs Division, the ITFC Murahaba 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.

As a result of successful discussions between Minister @OmarAyubKhan and Eng. Hani Salem Sonbol, CEO, @ITFCCORP, Pakistan has secured US$ 761.5 million Murabaha Financing for import of petroleum products on deferred payment. @FinMinistryPak @StateBank_Pak @appcsocialmedia pic.twitter.com/ccLgaAmHnW

— Economic Affairs Division, Government of Pakistan (@eadgop) November 4, 2021

It added that the financing is enhanced 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 $4.5 billion financing window.