ISLAMABAD: A virtual meeting held today between Minister for Economic Affairs Omar Ayub Khan and International Islamic Trade Finance Corporation (ITFC) Chief Executive Officer (CEO ) Hani Salem Sonbol to discuss the scope of ITFC financing. It was discussed how ITFC can arrange financing for broader trade activities in Pakistan under commodity financing.
The Minister for Economic Affairs appreciated ITFC who arranged financing of about US$7 billion for import oil & LNG from 2008 to 2021. It was highlighted that Pakistan’s POL financing requirement is much bigger, therefore, ITFC can get a bigger portion of financing from the existing US$1.5bn each year. It also came under deliberations on how this financing facility may also be utilized for import of food related commodities.
Sonbol thanked the minister appreciated EAD’s interest in ITFC to meet the short-term trade financing needs. He was also encouraged to include other commodities in addition to POL under the 4th Framework Agreement to be commenced from January 2021 and to increase annual financing from US$1.1bn to US$1.5 bn. He further added that ITFC arranged two Warehouse Receipt Financing workshops in Islamabad and Karachi during 2019 in collaboration with EAD and State Bank of Pakistan and will provide technical assistance for capacity building in the Agriculture Sector.
ITFC CEO updated that the ongoing syndication is about to complete & US$600 million will be available to Pakistan during this month. ITFC further assured that Pakistan is the top priority for the corporation to invest in trade financing & meet the country’s POL procurement requirements.