ITFC Extends $513M Murabaha Facility to Pakistan to Bolster Energy Security

In a landmark move aimed at reinforcing Pakistan’s energy security and economic resilience, the International Islamic Trade Finance Corporation (ITFC)—a member of the Islamic Development Bank (IsDB) Group—has signed a US$513 million Syndicated Murabaha Financing Facility with the Government of Pakistan. The signing ceremony, held under the auspices of IsDB President H.E. Dr. Muhammad Al-Jasser, represents the largest syndicated financing arranged by ITFC for Pakistan in the past three years.

This major financing agreement was signed by Eng. Adeeb Yousuf Al-Aama, CEO of ITFC, and Dr. Kazim Niaz, Federal Secretary for Economic Affairs of Pakistan, signifying a deepening of strategic trade and financial cooperation between the two entities.

A Record-Breaking Facility with Strong Market Backing

The financing facility, structured under Murabaha principles, was significantly oversubscribed, with the final amount raised reaching more than double the initial target. This overwhelming investor interest reflects the robust trust of international capital markets in both Pakistan’s improving macroeconomic stability and ITFC’s credibility as a facilitator of Islamic finance solutions.

According to Eng. Adeeb Y. Al-Aama, “This syndicated financing is a clear vote of confidence by the market in both the ITFC’s capabilities and Pakistan’s economic trajectory. It demonstrates the growing trust of our financing partners and our unwavering commitment to Pakistan’s energy security.”

The $513 million facility will be utilized primarily for the import of crude oil, petroleum products, and liquefied natural gas (LNG)—critical components for maintaining energy supplies and supporting industrial productivity in Pakistan.

Energy Security and Economic Stabilization

The timely financing comes amid Pakistan’s ongoing efforts to stabilize its economy and improve energy self-sufficiency. With growing urbanization, population expansion, and industrial demand, Pakistan’s energy needs have surged in recent years. The facility ensures uninterrupted procurement of vital fuels, thereby supporting both short-term energy requirements and long-term national development goals.

“Pakistan is witnessing positive macroeconomic trends,” said Dr. Kazim Niaz. “This significant financing from the ITFC underlines the international confidence in our economic policies and our dedication to fostering robust partnerships. It will enhance our trade capabilities and help stabilize our economy further.”

A Strategic and Enduring Partnership

Since the inception of their partnership in 2008, the ITFC and the Government of Pakistan have forged a resilient alliance, with over US$8.1 billion in trade finance approved to date. This relationship has evolved into one of the most strategic in the region, with a shared emphasis on Shari’ah-compliant trade financing, energy security, and development impact.

The latest Murabaha facility aligns with ITFC’s broader mission to mobilize Islamic financing tools that empower member countries, enabling them to meet urgent development needs without straining fiscal capacity.

ITFC’s support extends beyond financing. It plays a pivotal role in trade development, regional integration, and capacity building. Its initiatives are especially critical for Organization of Islamic Cooperation (OIC) member states, many of whom face similar development challenges.

Enhancing Trade and Development Resilience

The facility is not only a response to Pakistan’s immediate energy needs but also a strategic intervention aimed at improving the country’s trade resilience. With global energy markets facing volatility, ensuring a reliable stream of fuel imports through flexible financing mechanisms is key to protecting domestic supply chains and enabling export-oriented sectors to thrive.

This deal also sets the stage for future syndicated Islamic financing arrangements that can support Pakistan’s renewable energy transition, industrial expansion, and broader infrastructure development under the framework of sustainable and inclusive growth.

A Shared Vision for Sustainable Growth

As Pakistan navigates a complex global economic environment, strengthening partnerships with multilateral lenders like the ITFC becomes increasingly critical. The Government of Pakistan continues to prioritize economic reforms, fiscal prudence, and development-led trade strategies, and the latest agreement reflects a shared vision of stability, inclusion, and resilience.

With this milestone financing, the ITFC reaffirms its commitment to supporting Pakistan’s energy and trade ecosystem, demonstrating how Islamic financial institutions can offer pragmatic, ethical, and impactful solutions to today’s economic challenges.