In a signed agreement on Tuesday, the International Islamic Trade Finance Corporation (ITFC), a subsidiary of the Islamic Development Bank, and Pakistan agreed that the former will make available $1.2 billion in syndicated loans for commodities financing, mostly in the oil and gas sectors.
The Annual Plan was signed during a ceremony held at ITFC headquarters in Jeddah between a delegation from the Pakistan Ministry of Economic Affairs and representatives from the International Islamic Trade Finance Corporation.
The agreement, worth US$ 1.2 billion, provides for the financing of essential commodities such as crude oil, refined petroleum products, LNG, food, and agricultural products, as well as the implementation of trade-related technical assistance interventions to ensure that trade development has a positive impact on the economy.
Despite a difficult year following the COVID-19 epidemic, the International Trade Finance Corporation (ITFC) offered approximately US$1.1 billion in trade finance in 2021. In June 2021, the International Trade Finance Corporation (ITFC) signed a fourth structure agreement with the Government of Pakistan for a total of US$4.5 billion.
It is worth noting that the International Islamic Trade Finance Corporation (ITFC) has granted the Government of Pakistan US$ 6.7 billion since 2008.