ISLAMABAD: Pakistan and the International Islamic Trade Finance Corporation (ITFC), a subsidiary of Islamic Development Bank (IsDB) Group, Monday signed a trade financing facility agreement amounting to US$ 551 million for import of oil and LNG.

Adviser to the Prime Minister on Finance, Revenue and Economic Affairs (EAD), Dr. Abdul Hafeez Shaikh, witnessed the signing of the agreement between EAD, ITFC and representatives of Pakistan State Oil (PSO), Pak Arab Refinery Limited (PARCO) and Pakistan LNG Limited.

This facility would be utilized by PSO, PARCO, and Pakistan LNG Limited (PLL), according to press statement issued by the Finance Ministry here.

The financing Agreement provides trade financing amounting to US $ 551 million for a period of one year for import of oil and LNG.

ITFC has agreed to provide trade financing of US$ 1.3 billion during the year 2019 for import of oil and LNG by PSO, PARCO and Pakistan LNG Limited, the statement added.

It may be recalled that this facility is a part of Framework Agreement signed with 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 facility would 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 international financial institutions in Pakistan’s economy and its future.

On the occasion, Dr. Abdul Hafeez Shaikh thanked and appreciated ITFC’s support for Pakistan.