Pakistan to get $1.2bn from ITFC

ISLAMABAD: The International Islamic Trade Finance Corporation (ITFC), a subsidiary of the Islamic Development Bank, and Pakistan on Tuesday signed an agreement under which the former would make available $1.2 billion of syndicated loan for commodity financing, particularly oil and gas.

The Annual Plan was signed during a ceremony in ITFC headquarters in Jeddah between ITFC and a delegation of the Pakistan Ministry of Economic Affairs (EAD).

The US$ 1.2 billion agreement includes financing the import of essential commodities such as crude oil, refined petroleum products, LNG, food and agricultural products; in addition to implementing trade related technical assistance intervention to ensure trade development impact.

Despite a challenging year in due to the COVID-19 pandemic, ITFC provided around US$1.1 billion of trade financing in 2021. ITFC has signed the 4th framework agreement with the Government of Pakistan in June 2021 for US$ 4.5 billion.

It is worth mentioning that, since 2008, ITFC has provided US$ 6.7 billion in favor of the Government of Pakistan.