ISLAMABAD: Prime Minister’s Adviser on Finance, Revenue and Economic Affairs Dr. Abdul Hafeez Shaikh witnessed the signing a trade financing facility amounting to $ 551 million with the International Islamic Trade Finance Corporation (ITFC) for import of oil and liquefied natural gas (LNG) here on Monday.

According to an official handout circulated by the Economic Affairs Division on Monday, the facility will be utilized by Pakistan State Oil (PSO) Company Limited, Pak Arab Refinery Limited (PARCO) and Pakistan LNG Limited (PLL).

The ITFC is an autonomous entity within the Islamic Development Bank Group that was created to improve the economic condition and livelihood of people across the Muslim world.

The agreement was signed among the Economic Affairs Division, ITFC and representatives of PSO, PARCO and PLL. It provides trade financing amounting to US $551 million for a period of one year for the import of oil and LNG.

The ITFC has agreed to provide trade financing of $1.3 billion during the year 2019 for import of oil and LNG by PSO, PARCO and Pakistan LNG Limited. The facility is a part of Framework Agreement signed with the ITFC in April 2018 for a total envelop of $4.5 billion over for a period of three years (2018-2020).

“Signing of this financing facility will be helpful in financing oil and gas import bill of the country and easing of pressure on foreign exchange reserves of the country,” said the official handout. “This agreement also reflects the confidence of international financial institutions in Pakistan’s economy and its future.”

At the end of the ceremony, Dr. Abdul Hafeez Shaikh thanked the ITFC and appreciated its support to Pakistan.