Pakistan, Islamic Trade Finance Corporation sign $4.5 billion agreement for fuel imports

Pakistan's Minister for Economic Affairs Omer Ayub Khan (second from left) and CEO International Islamic Trade Finance Corporation (ITFC) Eng. Hani Salem Sonbol (third from left) witness the virtual signing of an agreement for the import of fuel on June 28, 2021. (Photo courtesy: ITFC)
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Updated 29 June 2021
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Pakistan, Islamic Trade Finance Corporation sign $4.5 billion agreement for fuel imports

  • Pakistan will import petroleum products including crude oil, refined products, LNG under three-year agreement
  • Financing will be utilized by Pakistan State Oil, Pak-Arab Refinery Ltd, Pakistan LNG Ltd.

KARACHI: The International Islamic Trade Finance Corporation (ITFC) has signed a three-year agreement for a cumulative amount of $4.5 billion with Pakistan to provide financing for the import of essential commodities such as crude oil, refined petroleum products, LNG and urea.

The signing took place virtually on Monday between Omar Ayub Khan, Pakistani Minister of Economic Affairs, and Hani Salem Sonbol, the CEO of ITFC. Other officials were also present.
Financing available through the facility will be utilized by Pakistan State Oil (PSO), Pak-Arab Refinery Ltd. (PARCO) and Pakistan LNG Ltd. (PLL) for the import of crude oil, refined petroleum products and LNG during 2021-2023.
The ITFC agreement will facilitate identification of other areas of cooperation at the country and regional levels to enhance and promote trade, trade capacities of relevant state authorities and financial institutions and trade cooperation in Pakistan, a statement released by ITFC said.
Sonbol said the agreement reflected the importance of longstanding cooperation between ITFC and the government of Pakistan.
“ITFC is continuously workingclosely with its member countries to meet their requirements by providing integrated solutions that include financing and capacity building tools that allows for maximizing the development impact of ITFC interventions,” the CEO was quoted as saying in the statement from ITFC.
“We are delighted and we will continue to mobilize financial resources to support Pakistan in its endeavours to achieve its economic targets through the new Framework Agreement.”
The agreement also covers ITFC’s support for trade related technical assistance projects in Pakistan, which will be selected jointly by both parties according to the national economic priorities and the development plan of Pakistan.
Earlier this month Dr. Waqar Masood, the prime minister’s aide for revenue, had announced that Saudi Arabia would resume oil imports on deferred payments to help Pakistan ease its financial burdens.
The facility will be available to Pakistan from July this year.
Omar Ayub Khan thanked the ITFC for arranging the financing, which would help Pakistan in meeting its import requirements of oil and LNG and ease pressure on the country’s cash reserves.
“This Agreement will further strengthen partnership between Islamic Republic of Pakistan and ITFC,” the statement quoted Khan as saying.


Pakistan urges UN Security Council to sanction separatist BLA group after recent attacks

Updated 05 February 2026
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Pakistan urges UN Security Council to sanction separatist BLA group after recent attacks

  • Separatist BLA launched attacks in multiple Balochistan cities last week, killing over 50 as per official figures
  • Pakistan envoy says since Taliban assumed control of Afghanistan, BLA, other militant groups have a “new lease of life“

ISLAMABAD: Pakistan’s UN Ambassador Iftikhar Ahmed this week urged the Security Council to impose sanctions against the separatist Baloch Liberation Army (BLA) militant group and designate it as a “terrorist” group, after its recent coordinated attacks in southwestern Balochistan province. 

Pakistan’s military said on Thursday it has concluded security operations in Balochistan against separatists that was launched since Jan. 29, killing 216 militants. The military launched counteroffensive operations in Balochistan after the BLA said it launched coordinated attacks in several parts of the province last Friday and Saturday. 

The attacks killed 36 civilians and 22 law enforcement and security forces personnel, Pakistan’s military said. Pakistan’s government has accused India of being involved in the attacks, charges that New Delhi has dismissed. 

“We hope the Council will act swiftly to designate BLA under the 1267 sanctions regime acceding to the listing request that is currently under consideration,” Iftikhar said on Wednesday during a UNSC briefing on the topic ‘Threats to International Peace and Security caused by Terrorist Acts.’

The 1267 sanctions regime is a UNSC program that seeks to impose sanctions on individuals and entities associated with “terrorism.”

The regime seeks to impose travel bans, freeze assets and impose an arms embargo on individuals and groups primarily associated with Al-Qaeda or the Taliban. 

Ahmad said that after the Taliban takeover of Afghanistan in 2021, “externally sponsored and foreign-funded proxy terrorist groups” such as the Tehreek-e-Taliban Pakistan and the BLA have got a “new lease of life.”

“Operating with virtual impunity from Afghan soil and with the active support of our eastern neighbor, these groups are responsible for heinous terrorist attacks inside Pakistan,” he said. 

The Pakistani envoy said it has become imperative to prevent billions of dollars of sophisticated weapons and equipment, which were left behind by foreign forces in Afghanistan, “from falling into the hands of terrorists.”

“There must be accountability of external destabilizing actors who support, finance and arm these groups, including their proxies in Afghanistan,” Ahmad said in a veiled reference to India. 

Pakistan’s largest and poorest province, mineral-rich Balochistan borders Iran and ‌Afghanistan and is home to China’s investment in the Gwadar deep-water ‍port and other projects.

Balochistan has been the site of a ‍decades-long insurgency led by ethnic Baloch separatists seeking greater autonomy and a larger share of its natural ‍resources. 

They accuse the state of denying locals a fair share of the province’s mineral wealth, charges that are denied by the Pakistani government.