KARACHI: The International Islamic Trade Finance Corporation (ITFC) has signed a three-year agreement for a cumulative amount of $4.5 billion with Pakistan to provide financing for the import of essential commodities such as crude oil, refined petroleum products, LNG and urea.

The signing took place virtually on Monday between Omar Ayub Khan, Pakistani Minister of Economic Affairs, and Hani Salem Sonbol, the CEO of ITFC. Other officials were also present.
Financing available through the 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 2021-2023.
The ITFC agreement will facilitate identification of other areas of cooperation at the country and regional levels to enhance and promote trade, trade capacities of relevant state authorities and financial institutions and trade cooperation in Pakistan, a statement released by ITFC said.
Sonbol said the agreement reflected the importance of longstanding cooperation between ITFC and the government of Pakistan.
“ITFC is continuously workingclosely with its member countries to meet their requirements by providing integrated solutions that include financing and capacity building tools that allows for maximizing the development impact of ITFC interventions,” the CEO was quoted as saying in the statement from ITFC.
“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.”
The agreement also covers ITFC’s support for trade related technical assistance projects in Pakistan, which will be selected jointly by both parties according to the national economic priorities and the development plan of Pakistan.
Earlier this month Dr. Waqar Masood, the prime minister’s aide for revenue, had announced that Saudi Arabia would resume oil imports on deferred payments to help Pakistan ease its financial burdens.
The facility will be available to Pakistan from July this year.
Omar Ayub Khan thanked the ITFC for arranging the financing, which would help Pakistan in meeting its import requirements of oil and LNG and ease pressure on the country’s cash reserves.
“This Agreement will further strengthen partnership between Islamic Republic of Pakistan and ITFC,” the statement quoted Khan as saying.