Pakistan and ITFC sign annual financing plan amounting to US$ 1.1 Billion

Makhdum Khusro Bakhtyar, Minister for Economic Affairs witnessed the signing ceremony of the International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org) Annual Financing Plan 2021 for the Government of Pakistan, amounting to US$ 1.1 billion. The document was signed by Mr Noor Ahmed, Secretary, Economic Affairs Division and Eng. Hani Salem Sonbol, Chief Executive Officer, International Islamic Trade Finance Corporation (ITFC, a subsidiary organization of Islamic Development Bank Group).

According to the Annual Financing Plan 2021, ITFC will mobilize trade financing of US$ 1.1 Billion during the year 2021. The financing available through this facility will be utilized by Pakistan State Oil (PSO), Pak-Arab Refinery Ltd. (PARCO) and Pakistan LNG Ltd. (PLL) for the import of crude oil, refined petroleum products and LNG during the year 2021. This will be helpful to augment the foreign currency reserves of the country and provide resources to meet the oil import bill. Such financing commitments reflect the confidence of international financial institutions in Pakistan's economy.

Eng. Hani Salem Sonbol, Chief Executive Officer, ITFC highlighted that Pakistan and ITFC have long-standing 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 the financial needs of Pakistan for the import of crude oil, petroleum products and LNG.

Makhdum Khusor Bakhtyar, Minister for Economic Affairs, thanked and appreciated ITFC support for Pakistan. The Minister underscored the importance of the partnership between ITFC and Pakistan and highlighted that ITFC financing for the import of oil and LNG. The Minister also appreciated ITFC's role in the development of trade and financing in the OIC member countries.

During the ceremony, it was also discussed and agreed in principle to expand the scope of future cooperation for the financing of agricultural commodities including fertilizers, and assisting Pakistan in developing a system of warehouse receipt financing facility. Both sides agreed to finalize a new framework agreement potentially by June 2021. The Minister welcomed and encouraged ITFC to play a bigger role in trade financing in Pakistan.

(With Inputs from APO)