Govt, ITFC sign $551m loan agreement for import of oil, LNG

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ISLAMABAD: Adviser to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh witnessed the signing of a loan agreement amounting to $551 million with the International Islamic Trade Finance Corporation (ITFC), a subsidiary of Islamic Development Bank (IsDB) Group, for import of oil and LNG.

This facility would be utilized by Pakistan State Oil Company Limited, Pak Arab Refinery Limited (PARCO) and Pakistan LNG Limited (PLL).

The agreement was signed among the Economic Affairs Division and ITFC and the representatives of PSO, PARCO and Pakistan LNG Limited. The financing agreement provides trade financing amounting to $551 million for a period of one year for import of oil and LNG.

ITFC has agreed to provide trade financing of $1.3 billion during the year 2019 for import of oil and LNG by PSO, PARCO and PLL.

It may be recalled that this facility is part of a framework agreement signed with ITFC in April 2018 for a total envelope of $4.5 billion over for a period of three years (2018-2020).

The signing of this financing facility would help finance oil and gas import bill of the country and ease the pressure on foreign exchange reserves of the country. This agreement also reflects the confidence of the international financial institutions in Pakistan’s economy and its future.

Dr Abdul Hafeez Shaikh on the occasion appreciated the continuous support of ITFC in the development of Pakistan.

Meanwhile, World Bank Country Director Patchamuthu Illangovan called on Advisor to PM on Finance Dr Abdul Hafeez Shaikh to discuss the ongoing projects being supported by the bank.

The advisor emphasised the need to expedite the finalisation of new financing in the pipeline before the end of FY2018-19. He assured the country director that all approvals would be expedited to ensure timely disbursement.

It was also agreed that World Bank Chief Executive Officer Kristalina Georgieva would meet Prime Minister Imran in China during his visit later this month there.

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