Pakistan and the International Islamic Trade Finance Corporation (ITFC) — a subsidiary of the Islamic Development Bank (IDB) — have signed a $513 million Murabaha Financing Facility Agreement to help meet the country's growing energy needs.

The signing ceremony, held in Jeddah, was attended by the president of the Islamic Development Bank, Dr. Muhammad Al-Jasser, while Pakistan was represented by Economic Affairs Secretary Dr. Kazim Niaz.

The financing package will be disbursed to Pakistan over the next three years and will be utilized for the import of crude oil, petroleum products, and liquefied natural gas (LNG).

“This facility will further strengthen our trade capacity,” said Dr. Kazim Niaz during the ceremony, highlighting the importance of the agreement in boosting Pakistan’s energy and trade resilience.

The ITFC described this as its largest financing agreement with Pakistan in the past three years. According to ITFC officials, the institution has extended $8.1 billion in financing to Pakistan since 2008, primarily to support energy imports and strengthen trade operations.

Also Read: Japan grants $263m for human resource scholarships in Pakistan

Meanwhile, Pakistan and Japan on Tuesday signed an agreement under which the Japanese government will provide a grant of $263 million to support human resource development in Pakistan.

The 'Human Resource Development Scholarship' agreement was signed by Economic Affairs Secretary Dr. Kazim Niaz and the Japanese ambassador to Pakistan. The grant is aimed at equipping young professionals in the federal government with higher education opportunities in Japan.

According to a statement issued by the Economic Affairs Division, 16 federal employees will be selected under the latest phase to pursue Master's degrees at top Japanese universities. The programme, run in collaboration with the Japan International Cooperation Agency (JICA), seeks to strengthen the administrative capacity and policy formulation skills of public sector officers.