ITFC Agrees to Expand Scope of Its USD 4.5 Billion Trade Financing Facility to Pakistan

In a virtual meeting between Omar Ayub Khan, Pakistan’s Minister for Economic Affairs and Hani Salem Sonbol, Chief Executive Officer of the International Islamic Trade Finance Corporation (ITFC), the latter confirmed the availability of USD 600 million to Pakistan allowable for commodity financing. This falls under the three year (2021-2023) new framework agreement worth USD 4.5 billion, contracted by both parties in June 2021.

Why it Matters?

The USD 4.5 billion facility was cemented to support the financing of oil, liquefied natural gas (LNG), as well as fertiliser imports over the agreed three-year period. However, Pakistan’s utilisation of the previous facility during the last fiscal cycle (ended June 2021) stood at just over 50%, with...