A virtual meeting was held today between Omar Ayub Khan, Minister for Economic Affairs, and Hani Salem Sonbol, CEO of International Islamic Trade Finance Corporation.
The aim of the meeting was to discuss the scope of International Islamic Trade Finance Corporation (ITFC) financing for broader trade activities in Pakistan under commodity financing.
The Minister for Economic Affairs expressed his appreciation about how the ITFC arranged financing of about $7 billion for the import of oil and LNG from 2008 to 2021.
Officials highlighted that Pakistan’s petroleum, oils, and lubricants (POL) financing requirement is higher and that the ITFC can get more financing than the existing $1.5 billion each year. They also deliberated how this financing facility may also be utilized for the import of food-related commodities.
Sonbol thanked Khan and appreciated Economic Affairs Department’s (EAD) interest in helping the ITFC meet short-term trade financing needs. He also encouraged the EAD to include other commodities in addition to POL products under the 4th Framework Agreement, which will commence from January 2021, and to increase annual financing from $1.1 billion to $1.5 billion.
He mentioned that the ITFC arranged two warehouse receipt financing workshops in Islamabad and Karachi during 2019, in collaboration with the EAD and State Bank of Pakistan.
Sonbol added that the ITFC would provide technical assistance for capacity building in the agriculture sector.
The CEO updated that the ongoing syndication is about to end and that $600 million will be available to Pakistan this month.
ITFC assured officials that Pakistan and investment in trade financing and meeting the country’s POL procurement requirements is the top priority for the corporation.
Source: Pro Pakistani