KARACHI: Pakistan’s minister for economic affairs said on Thursday a $1.1 billion loan agreement signed between Islamabad and the International Islamic Trade Finance Corporation (ITFC) to import oil and liquefied natural gas (LNG) reflected growing confidence by international players in Pakistan’s economy.

State-owned Pakistan State Oil, Pak-Arab Refinery and Pakistan LNG Limited will utilize the financing to import crude oil, refined petroleum products and LNG during 2021, according to a statement from the economic affairs division.

“The financing commitments reflect confidence of international financial institutions in Pakistan’s economy,” Khusro Bakhtiar, the economic affairs minister, who witnessed the agreement signing on Wednesday, told Arab News, saying the partnership would help revive the country’s industrial sector.

Bakhtiar also applauded ITFC’s role in the development of trade and financing in OIC member countries.

Last year, ITFC loaned Pakistan $386 million to import LNG and oil under a trade financing facility, which is part of a framework agreement signed in April 2018 for a total envelope of $4.5 billion, over for a period of three years (2018-2020).

ITFC Chief Hani Salem Sonbol said Pakistan was the second largest beneficiary of his organization’s financing, saying ITFC would continue to help Pakistan meet its financial requirements.

“Pakistan is the 2nd largest beneficiary of ITFC financing. ITFC will continue its support to meet financial needs of Pakistan for import of crude oil, petroleum products and LNG,” Sonbol said.

“Utilization of the facility will support Pakistan’s foreign exchange reserves,” Samiullah Tariq, director research at the Pakistan-Kuwait Investment, told Arab News on Thursday. “The country will be able to pay for a huge chunk of its imports through this facility.”