ISLAMABAD: The government, on Monday, signed financing agreement amounting to $386 million with the International Islamic Trade Finance Corporation (ITFC), a subsidiary of the Islamic Development Bank (IsDB) Group, for import of oil and LNG.
This facility will be utilised by the Pakistan State Oil Company Limited, the Pak Arab Refinery Limited (PARCO), and the Pakistan LNG Limited (PLL).
The agreement was signed among the Economic Affairs Division, the ITFC, and the representatives of the PSO, the PARCO, and the Pakistan LNG Limited.
The financing agreement provides trade financing amounting to US $386 million for a period of one year for import of oil and LNG.
The ITFC has agreed to provide trade financing of US $1.2 billion during the year 2020 for import of oil and LNG by the PSO, the PARCO, and the Pakistan LNG Limited.
This facility is a part of Framework Agreement signed with the ITFC in April 2018 for a total envelop of US $4.5 billion over for a period of three years (2018-2020).
Signing of this financing facility will be helpful in financing oil and gas import bill of the country, and easing of pressure on foreign exchange reserves of the country.
This agreement also reflects confidence of the international financial institutions in Pakistan's economy and its future.
During the signing ceremony, both sides voiced hope to work closely with each other for mobilisation of socio-economic development of the country.
Copyright Business Recorder, 2020
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