The government of Pakistan and the International Islamic Trade Finance Corporation (ITFC) signed New Framework Agreement amounting to US$ 4.5 billion.
The International Islamic Trade Finance Corporation (ITFC) signed a 3-Year Framework Agreement for a cumulative amount of US$4.5 billion with the Government of Pakistan in order to provide financing for the import of essential commodities such as crude oil, refined petroleum products, LNG, and urea.
Within the context of its trade-integrated solutions approach, the Framework Agreement also covers ITFC’s support for trade-related technical assistance projects in the Islamic Republic of Pakistan, which will be selected jointly by both parties according to the national economic priorities and development plan of Pakistan. The Agreement will facilitate the identification of other areas of cooperation at country and regional levels and enhance and promote trade, trade capacities of relevant state authorities and financial institutions, and trade cooperation in the Islamic Republic of Pakistan.
The signing took place virtually, where Mr. Omar Ayub Khan, Minister of Economic Affairs, witnessed the signing ceremony between Eng. Hani Salem Sonbol, CEO ITFC, and Mr. Noor Ahmed, Secretary Ministry of Economic Affairs, Islamic Republic of Pakistan. 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 years 2021-2023.
Referring to the agreement, Eng. Hani Salem Sonbol, CEO ITFC, stated that this 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 allow for maximizing the development impact of ITFC interventions. We are delighted and we will continue to mobilize financial resources to support Pakistan in its endeavours to achieve its economic targets through the new Framework Agreement.”
Mr. Omar Ayub Khan, Minister for Economic Affairs, Islamic Republic of Pakistan, thanked the ITFC for arranging this financing, which will help Pakistan in meeting its import requirements of oil and LNG and ease pressure on cash reserves of the country. The Minister deeply commended the role and endeavors of Engr. Hani Salem Sonbol, CEO of ITFC, and his team for arranging this financing at a very challenging time. This Agreement will further strengthen the partnership between the Islamic Republic of Pakistan and ITFC.
