Minister for Economic Affairs, Makhdum Khusro Bakhtyar, witnessed the signing ceremony of the International Islamic Trade Finance Corporation’s (ITFC) Annual Financing Plan 2021 for the Government of Pakistan, amounting to $1.1 billion.
The document was signed by Secretary Economic Affairs Division, Noor Ahmed, and ITFC Chief Executive Officer, Eng. Hani Salem Sonbol.
ITFC is a subsidiary organization of Islamic Development Bank Group. According to the Annual Financing Plan, ITFC will mobilize trade financing of $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 would help augment the foreign currency reserves of the country and provide resources to meet the oil import bill.
Bakhtyar thanked and appreciated ITFC’s support for Pakistan and said that the financing commitments reflect the confidence of international financial institutions in Pakistan’s economy.
The Minister underscored the importance of the partnership between ITFC and Pakistan and highlighted that ITFC financing for the import of oil and LNG was instrumental in the revival industrial sector of Pakistan economy.
He also appreciated ITFC’s role in the development of trade and financing in the OIC member countries.
Sonbol said that Pakistan and ITFC have long-standing cooperation since the creation of the international corporation in 2008. He highlighted that Pakistan is the 2nd largest beneficiary of ITFC financing and assured that ITFC will continue its support to meet the financial needs of Pakistan for the import of crude oil, petroleum products, and LNG.
Both sides agreed to enhance the portfolio, including the agricultural sector.