ISLAMABAD: The federal government has signed a 3-Year framework agreement the International Islamic Trade Finance Corporation (ITFC) for a cumulative amount of $4.5 billion with of Pakistan in order to provide financing for the import of essential commodities such as crude oil, refined petroleum products, LNG and urea.|
The signing took place virtually, where Minister of Economic Affairs Omar Ayub Khan witnessed the signing ceremony between ITFC CEO Hani Salem Sonbol and Ministry of Economic Affairs Secretary Noor Ahmed.
The financing available through this facility will be utilizsd 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 during the years 2021-2023.
Within the context of its trade integrated solutions approach, 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 country’s development plan.
The agreement will facilitate identification of other areas of cooperation at country and regional levels and to enhance and promote trade, trade capacities of relevant state authorities and financial institutions and trade cooperation.
Referring to the agreement, Sonbol stated that this agreement reflects the importance of the longstanding cooperation between ITFC and the Pakistan.
Omar Ayub Khan thanked the ITFC for arranging this financing, which will help Pakistan in meeting its import requirements of oil and LNG and ease pressure on cash reserves of the country.
The minister commended the role and endeavors of the ITFC CEO and his team for arranging this financing at a very challenging time.
