By Ron Chen, Correspondent ASEAN Region

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 identification of other areas of cooperation at country and regional levels and to 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 Minister of Economic Affairs Omar Ayub Khan witnessed the signing ceremony between CEO, ITFC Eng. Hani Salem Sonbol and Secretary, Ministry of Economic Affairs, Islamic Republic of Pakistan, Eng. Hani Salem Sonbol. 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 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 allows 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.”

Minister for Economic Affairs, Islamic Republic of Pakistan Omar Ayub Khan 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, ITFC and his team for arranging this financing at a very challenging time. This Agreement will further strengthen partnership between Islamic Republic of Pakistan and ITFC.