November 10, 2021 (MLN): Government has signed $761.5 million agreement with the International Islamic Trade Finance Corporation (ITFC) for fuel import of crude oil, refined petroleum products and LNG, a press release showed on Wednesday.

The syndicated Murabaha financing facility will be in effect for one year and is a part of umbrella framework agreement signed with ITFC in June 2021 for a total of $4.5 billion ($1.5bn per annum) for a period of three years.

“The facility has been made effective immediately and ready for utilization by Pakistan State Oil Company Ltd (PSO), Pak Arab Refinery Ltd (PARCO) and Pakistan LNG Ltd (PLL) for import of oil and gas,” the press release read.

Earlier, the ITFC had agreed to provide financing of $300m. However, due to country’s growing energy needs and recovering demand, the financing was increased by 2.5 times to $761.5m.

Press Release