$551m capacity Signed with ITFC for fuel Imports

ISLAMABAD: The government of Pakistan and the International Islamic Trade Finance Corporation ( ITFC ) on Monday signed a $551 million facility to finance oil and liquefied natural fuel ( LNG ) imports through the recent economical year. Consultant to the Prime Minister on Finance, Earnings and Economic Affairs Dr. Abdul Hafeez Shaikh attended the registering ceremony.

This year, however, the service could not go beyond $1.05bn owing to restrictions of the partner banks of the ITFC. It includes previously expanded about $500m funds in 3 installments of $27m, $125m and $100m during the present fiscal year.

The capability will financial crude imports for Pak Arab Refinery Limited ( Parco ), petroleum items by Pakistan State Oil and LNG by Pakistan LNG Limited ( PLL ). The IDB through the ITFC have been facilitating oil import protection and very first time included LNG financing.

The most recent financing facility would become helpful within this week on vetting by the Civil code and Justice Division, a senior official said to Dawn. He declared efforts were being made to proactively engage with ITFC through synchronization of oil and LNG imports schedules to ensure maximum utilization of credit line upcoming year.

The Economic Affairs Division declared the ITFC facility was “a part of Frame-work Contract signed in April 2018 for a total envelop of $4 .5bn over for a time period of 3 years ( 2018-2020 )”. The credit facility is subject to about 2.3 percent plus the London Interbank Offered Rate ( Libor ).

Pakistan’s overall liquid foreign exchange reserves have amounted to about $16.2bn as of last week including $9.24bn of the State Bank of Pakistan and about $6.95bn of commercial banks.

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