Islamabad (HRNW) The International Islamic Trade Finance Corporation, a subsidiary of the Islamic Development Bank, has announced to provide $761.5 million Murabaha financing facility to Pakistan.
The money is to be used for the import of LNG, oil, and fertilizers. The fertilizer sector in the country is one of the largest user of natural gas. Hence, the facility will address country’s energy needs.
Saudi Arabia has already provided $1.2b oil on deferred payment facility.
Pakistan Ministry of Economic Affairs on Thursday said that the $761.5 million Murabaha financing was part of the $4.5 billion framework agreement signed by Pakistan and the International Islamic Trade Finance Corporation (ITFC ) in June this year to finance oil, LNG and fertilizer imports over the next three years (2021-23).
Federal Minister for Economic Affairs Omar Ayub said that ITFC financing would help to ease pressure on exchange rate and stabilize forex reserves. It also reflected confidence of International Financial Institutions (IFIs) in Pakistan’s economy, he said.
“ITFC also agreed to continue their cooperation in future for maximum utilization of US$ 4.5 billion financing window,” said Ayub.
Ayub said that due to the strong economic recovery and high demand, financing has been increased from $300 million to $761.5 million.
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