Economic Affairs Minister Makhdum Khusro Bakhtyar on Wednesday witnessed the signing of International Islamic Trade Finance Corporation (ITFC) Annual Financing Plan 2021 for Pakistan, amounting to $1.1 billion.
The document was signed by Economic Affairs Division Secretary Noor Ahmed and ITFC Chief Executive Officer Eng Hani Salem Sonbol, according to statement issued by the Ministry of Economic Affairs.
As per the Annual Financing Plan 2021, ITFC will mobilize trade financing of $1.1 billion during the year 2021. The financing available through this facility will be utilised by Pakistan State Oil (PSO), Pak-Arab Refinery Ltd (PARCO) and Pakistan LNG Ltd (PLL) for import of crude oil, refined petroleum products and LNG.
“This will be helpful to augment foreign currency reserves of the country and provide resources to meet the oil import bill. Such financing commitments reflect confidence of international financial institutions in Pakistan’s economy,” the statement read.
Eng. Hani Salem Sonbol highlighted that Pakistan and ITFC have longstanding cooperation since the creation of ITFC in 2008. He highlighted that Pakistan is the 2nd largest beneficiary of ITFC financing.
He assured that ITFC will continue its support to meet financial needs of Pakistan for import of crude oil, petroleum products and LNG.
Makhdum Khusor Bakhtyar on the occasion thanked and appreciated ITFC support for Pakistan and underscored the importance of partnership between ITFC and Pakistan. He also appreciated ITFC’s role in the development of trade and financing in OIC member countries.
During the ceremony, it was also discussed and agreed in principle to expand the scope of future cooperation for financing of agricultural commodities, including fertilizers, besides developing a system of warehouse receipt financing facility in Pakistan.
The both sides agreed to finalize a new framework agreement potentially by June 2021.
