The Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank Group, will provide $3 billion in commodity financing to Pakistan, the government said on Friday.
The announcement followed discussions between Finance Minister Muhammad Aurangzeb and ITFC delegates in Washington, where global finance leaders are meeting for the annual World Bank and International Monetary Fund gatherings.
The loan aims to enhance trade among nations in the Organization of Islamic Cooperation. It includes an immediate disbursement of $269 million, a combination of direct financing and syndication, to be spread over the next three years under a Framework Agreement.
Finance Minister Aurangzeb, during the meeting with ITFC CEO Eng. Hani Salem Sonbol, expressed gratitude for the support which will focus on commodity financing. The ITFC also expressed an interest in diversifying its portfolio within Pakistan, with the Pakistani government affirming full support for this initiative.
Additionally, Aurangzeb participated in a roundtable organized by Jefferies International, where he updated institutional investors on Pakistan’s improving economic indicators.
He also joined a session with IMF Managing Director Kristalina Georgieva and other financial leaders from the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region to discuss regional economic challenges and opportunities.
