ITFC to give $4.5 billion financing for import of essential commodities

KARACHI: The government of Pakistan and the International Islamic Trade Finance Corporation (ITFC) have signed a three-year framework agreement for a cumulative amount of $4.5 billion to import essential commodities such as crude oil, refined petroleum products, liquefied natural gas (LNG) and urea, a statement said on Monday.

The framework agreement also covers ITFC’s support for trade-related technical assistance projects in 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 the country and regional levels and to enhance and promote trade, capacities of relevant state authorities and financial institutions and trade cooperation in the country.

Omar Ayub Khan, minister for economic affairs, witnessed the virtual signing ceremony between ITFC CEO Engineer Hani Salem Sonbol and Noor Ahmed, secretary for the Ministry of Economic Affairs.

The financing would be utilised by the 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 2021/23.

Referring to the agreement, Sonbol said that the framework agreement reflects the importance of the longstanding cooperation between ITFC and the government of Pakistan.

“ITFC is continuously working closely with its member countries to meet their requirements by providing integrated solutions that include financing and capacity-building tools that allows maximising the development impact of ITFC interventions.”

“We are delighted and we will continue to mobilise financial resources to support Pakistan in its endeavours to achieve its economic targets through the new framework agreement,” he added.

Omar Ayub Khan thanked ITFC for arranging this financing, which would help Pakistan meet its import requirements of oil and LNG and ease pressure on the cash reserves of the country.

The minister commended the role and endeavours of Sonbol and his team for arranging this financing at a very challenging time. This agreement would further strengthen the partnership between Pakistan and ITFC, he added.