Dr Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance, Revenue and Economic Affairs witnessed the signing of a trade financing facility amounting to US$ 551 million with the International Islamic Trade Finance Corporation (ITFC), a subsidiary of Islamic Development Bank (IsDB) Group, for import of oil and LNG.
This facility will be utilized by Pakistan State Oil Company Limited, Pak Arab Refinery Limited (PARCO) and Pakistan LNG Limited (PLL).
The agreement was signed among the Economic Affairs Division and ITFC and the representatives of PSO, PARCO and Pakistan LNG Limited. The financing agreement provides trade financing amounting to US $551 million for a period of one year for import of oil and LNG.
The ITFC has agreed to provide trade financing of US$ 1.3 billion during the year 2019 for import of oil and LNG by PSO, PARCO and Pakistan LNG Limited. It may be recalled that this facility is part of the Framework Agreement signed with ITFC in April 2018 for a total envelope of US$ 4.5 billion for a period of three years (2018-2020).
The signing of this financing facility will be helpful in financing oil and gas import bill of the country and easing pressure on foreign exchange reserves of the country. This agreement also reflects the confidence of international financial institutions in Pakistan’s economy and its future.