South Asia Times

Facebook X-twitter Youtube Instagram Tiktok Linkedin

Pakistan Trying to Get IsDB Financing, Revive Saudi Oil Facility

Pakistan explores syndicate financing from IsDB and seeks Saudi Oil Facility amid IMF concerns over the SOF's viability. [Image via The News]

Pakistan is exploring two options now, including securing syndicate financing from the Islamic Development Bank (IsDB) and making a last-ditch effort to convince Riyadh for provision of the Saudi Oil Facility (SOF), after the IMF raised a red flag about the possibility of SOF.

Prime Minister Shehbaz Sharif has made several visits to the Kingdom of Saudi Arabia (KSA) since assuming power in recent months, but has not yet firmed up the Saudi Oil Facility (SOF). In another effort, the KSA may consider the SOF for next 12 months from January or February 2025.

Islamabad is likely to make a formal request to the IsDB’s ITFC [International Islamic Trade Finance Corporation] arrangement for jacking up its financing for procurement of oil from $400 million to $1 or $1.2 billion depending upon the offered rates for enhanced loan facility.

Also See: Pakistanis welcome Aramco’s new Islamabad outlet

Potential Costs and Implications of ITFC Financing

The syndicate financing facility from ITFC might prove expensive. It would be tied to the Secured Overnight Financing Rate (SOFR), which currently stands at 4.59 percent, plus additional charges. It’s difficult to determine the exact rate for the upcoming facility. However, there are chances that the rate could rise to around 9 to 10 percent once all charges are included. The SOFR is a measure of the cost of borrowing cash overnight using treasury securities as collateral. Transaction data in the US treasury repurchase market calculates it.

Sources said Pakistan had already availed the oversubscribed ITFC facility. Pakistan received around $267 million, exceeding the expected installment of $200 million. Earlier, the IsDB had agreed to extend financing of $400 million to Pakistan. However, Pakistan has now formally requested the IsDB to enhance the facility to $1.2 billion. When contacted last week for comments, Minister for Economic Affairs Ahad Cheema stated, “Both options are open.” He was responding to a query regarding the SOF or ITFC from IsDB.

This news is sourced from The News and is intended for informational purposes only.

Picture of News Desk

News Desk

Your trusted source for insightful journalism. Stay informed with our compelling coverage of global affairs, business, technology, and more.

News Desk

Your trusted source for insightful journalism. Stay informed with our compelling coverage of global affairs, business, technology, and more.

Recent

Narrative by Design: Al Jazeera’s Editorial Tilt on the Pakistan–TTP Conflict

Narrative by Design: Al Jazeera’s Editorial Tilt on the Pakistan–TTP Conflict

SAT Editorial Desk November 17, 2025

Al Jazeera’s reputation for alternative journalism contrasts sharply with its recent reporting on Pakistan’s conflict with the TTP and tensions with the Afghan Taliban. A close review shows consistent editorial choices that soften the Taliban’s image, reframe terrorist violence as resistance, and cast Pakistan’s counter-terrorism actions as aggression—ultimately reshaping the narrative in Kabul’s favour.

Read More »
Modern Platforms, Evolving Doctrine

Modern Platforms, Evolving Doctrine

Dan Qayyum November 17, 2025

The Gulf’s air-power evolution is increasingly shaped by the fusion of advanced platforms with modern doctrine and faster decision cycles. As regional forces adapt to complex threat environments, partners like Pakistan, whose operational experience spans multiple domains, are becoming part of the broader conversation on future air-power thinking.

Read More »
Economic Engagement or Ethical Dilemma? Canada-India Relations and the Nijjar Case

Economic Engagement or Ethical Dilemma? Canada-India Relations and the Nijjar Case

SAT Commentary November 14, 2025

Canada’s renewed trade outreach to India comes at a moment of deep diplomatic strain. As Minister Maninder Sidhu seeks to revive economic cooperation, the unresolved assassination of Sikh activist Hardeep Singh Nijjar, and allegations implicating senior Indian officials, cast a long shadow. The controversy raises critical questions about whether Ottawa can balance economic ambitions with justice, accountability, and the protection of Canadian sovereignty.

Read More »
Zohran Mamdani calls out Modi and Netanyahu as war criminals, linking Gujarat 2002 and Gaza, and demands global justice and accountability.

Zohran Mamdani Stands Up for Justice: Holding Modi and Netanyahu Accountable

Farwa Imtiaz November 13, 2025

Zohran Mamdani, a rising progressive voice in the U.S., has boldly equated Indian Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu with war crimes. Drawing on global principles like the Responsibility to Protect (R2P) and ICC indictments, Mamdani challenges the immunity of influential leaders and advocates for accountability for mass atrocities in Gujarat (2002) and Gaza.

Read More »