IFC boosts trade finance with Bank Al Habib to support imports

ISLAMABAD: The International Finance Corporation (IFC) is partnering with Bank Al Habib Limited, to support the import of essential goods and equipment into Pakistan and foster a sustainable recovery from the Covid-19 pandemic, a statement said.

The IFC is enhancing its trade facility to Bank Al Habib Limited (BAHL) to enable it to support the longer-term imports of capital goods, including vital equipment, machinery, and tools, under its Global Equipment Finance Facility (GEFF).

BAHL Chief Executive Officer Mansoor Ali Khan said: “We are thankful to be a long-term partner of IFC’s global trade finance programme in Pakistan.”

“IFC’s support will enhance our existing trade limits to accommodate higher volumes of trade finance and extend our capacity to support the deliveries of vital capital goods to meet our clients’ import and business needs,” he added.

Bank AL Habib Limited is a long-term partner in IFC’s Global Trade Finance Programme (GTFP), which supports trade in the emerging markets by providing partial or full guarantees against underlying trade instruments and covering the payment risk of participating issuing banks.

IFC’s Incoming Regional Director for Middle East, Pakistan and Afghanistan Khawaja Aftab Ahmed said: “Trade finance is essential to enable the flow of goods and services in and out of the country, which is vital to support businesses and sustain livelihoods.”

“IFC’s support will enable our longstanding partner Bank AL Habib Limited to better support its clients importing critical goods in this challenging post-pandemic recovery period and help foster sustainable economic growth,” he added.

Under the GEFF, the IFC extends guarantees up to five years to selected partners for capital goods’ imports with the focus on climate change.

The project will enable BAHL to issue a letter of credit for up to 37 months for the import of critical capital goods into Pakistan, which has been constrained because of the pandemic.

IFC has supported trade worth around $200 billion in developing economies since 2005. Its GTFP commitments in Pakistan since inception stand at $4.77 billion, covering sectors including agriculture, chemicals, food and beverages, healthcare, energy, industrial products, telecoms, and textiles.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2021, the IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end poverty and boost shared prosperity as economies grapple with the impacts of the Covid-19 pandemic.