The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org) signed a 3-Year Framework Agreement for a cumulative amount of US$4.5 billion with the Government of Pakistan in order to provide financing for the import of essential commodities such as crude oil, refined petroleum products, LNG and urea.
Within the context of its trade integrated solutions approach, the Framework Agreement also covers ITFC's support for trade related technical assistance projects in the Islamic Republic of Pakistan, which will be selected jointly by both parties according to the national economic priorities and development plan of Pakistan.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 in the Islamic Republic of Pakistan.
The signing took place virtually, where Mr. Omar Ayub Khan, Minister of Economic Affairs witnessed the signing ceremony between Eng. Hani Salem Sonbol, CEO, ITFC and Mr. Noor Ahmed, Secretary, Ministry of Economic Affairs, Islamic Republic of Pakistan. 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 import of crude oil, refined petroleum products and LNG during the years 2021-2023.
Referring to the agreement, Eng. Hani Salem Sonbol, CEO, ITFC stated that this Framework Agreement reflects the importance of the longstanding cooperation between ITFC and the Government of Pakistan "ITFC is continuously workingcloselywith its member countriestomeet theirrequirements by providing integrated solutions thatincludefinancing andcapacity building tools thatallows for maximizing the development impact of ITFC interventions. We are delighted and we will continue to mobilize financial resources to support Pakistan in its endeavours to achieve its economic targets through the new Framework Agreement."
Mr. Omar Ayub Khan, Minister for Economic Affairs, Islamic Republic of Pakistan 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 deeply commended the role and endeavors of Engr. Hani Salem Sonbol, CEO, ITFC and his team for arranging this financing at a very challenging time. This Agreement will further strengthen partnership between Islamic Republic of Pakistan and ITFC.
Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
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About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$51 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries' needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.