The Jeddah-based Islamic Trade Finance Corporation (ITFC) has offered Pakistan with $4.5 billion worth of three-year trade facility to secure import cost of crude, petroleum products and LNG.
According to the details a formal financing framework agreement on the arrangement would be signed soon.
As per the Dawn report, this trade financing arrangement is in addition to about $531 million already signed by Ministry of Economic Affairs with Saudi Fund for Development (SFD) for project financing of Mohmand dam, a couple of coal-based projects besides a few hydropower projects including two in Azad Kashmir.
The ITFC’s financing would be utilized over three years (2021-23) by Pak-Arab Refinery Ltd (Parco), Pakistan State Oil (PSO) and Pakistan LNG Ltd (PLL) for import of crude oil, refined petroleum products and LNG and help augment the country’s foreign currency reserves and provide resources to meet the oil import bill.
