Pakistan has signed a financing agreement, amounting to $386 million, with the International Islamic Trade Finance Corporation (ITFC), a subsidiary of the Islamic Development Bank (IsDB) Group, for the import of oil and liquefied natural gas (LNG).
This facility will be utilized by Pakistan State Oil Company Limited (PSO), 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 $386 million for a period of one year for the import of oil and LNG. ITFC has agreed to provide trade financing of US$ 1.2 billion during the year 2020 for the import of oil and LNG by PSO, PARCO and Pakistan LNG Limited. It may be recalled that this facility is a part of Framework Agreement signed with ITFC in April 2018 for a total envelop of US$ 4.5 billion over for a period of three years (2018-2020).
The signing of this financing facility will be helpful in financing the oil and gas import bill of the country and easing of 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.
During the signing ceremony, both sides voiced hope to work closely with each other for the mobilization of socio-economic development of the country.