Pakistan and International Islamic Trade Finance Corporation (IITFC ) have sealed a $4.5 billion deal for for financing in import of crude oil, refined petroleum product and LNG.
The ITFC will provide Pakistan with $1.6b per year to import the commodities. Noor Ahmad of the economic affairs division and the corporation head Hani Salem inked the accord at a virtual signing ceremony that was witnessed by Economic Affairs Minister Umer Ayub.
Reportedly, in the context of trade integrated solutions approach, the agreement covers the corporation's support for trade-related technical assistance projects in Pakistan, which will be selected jointly by both parties according to the national economic priorities and development plan of Pakistan.
The pact 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 Pakistan.
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.
Omar Ayub tanked the Islamic corporation for financing that will help Pakistan meet its import requirements of oil and LNG and ease pressure on cash reserves of the country.