By: Arab news

The International Islamic Trade Finance Corp. has signed a $513 million syndicated Murabaha financing facility with Pakistan to fund vital oil and gas imports, bolstering the country’s energy sector.

This deal marks ITFC’s largest syndicated financing for the South Asian country in the past three years, with the final amount raised being more than double the initial target, highlighting strong investor interest and confidence, the Emirates News Agency, or WAM, reported.

This latest financing aligns with ITFC’s commitment to delivering effective, Shariah-compliant trade solutions that meet the pressing needs of its member countries.

This also corresponds with projections from Apex Solar, which expect Pakistan’s energy storage market to expand at a compound annual growth rate of 22 percent in 2025.

The newly released WAM statement said: “The proceeds of the financing will be used for the import of crude oil, petroleum products, and liquefied natural gas to meet Pakistan’s energy needs.”

It added: “By supporting Pakistan’s energy sector, the facility contributes to broader goals of economic stability, sustainable development, and enhanced trade integration across the Organization of Islamic Cooperation region.”

In addition, Pakistan’s climate change minister reaffirmed the country’s commitment to launching its first national carbon market, following talks with an UN-supported initiative aimed at implementing policy guidelines introduced in 2024.

Federal Minister for Climate Change and Environmental Coordination Musadik Malik hosted a delegation from the Supporting Preparedness for Article 6 Cooperation initiative, which is overseen by the UN Environment Program.

The five-year undertaking is supporting Pakistan, Colombia, Thailand, and Zambia in developing the capacity to trade carbon credits under Article 6 of the Paris climate accord.

SPAR6C’s work in Pakistan includes technical assistance, student training, and pilot activities to help the country develop robust standards for carbon trading.

Malik explained that the South Asian country is committed to building a robust, transparent, and inclusive carbon market, adding that deeper cooperation with international partners and the domestic private sector will be key to delivering on the country’s climate goals, according to a statement released by his office.

Pakistan ranks among the world’s most climate-vulnerable countries, facing frequent floods and heatwaves, yet it contributes only a fraction of global greenhouse gas emissions.

The nation has set a goal of generating 60 percent of its electricity from renewable sources by 2030 and cutting projected carbon emissions by 50 percent.