WASHINGTON, Oct 25 (NNI): The Islamic Trade Finance Corporation (ITFC) will provide Pakistan a loan of $3 billion.
The decision was taken during a meeting between Finance Minister Muhammad Aurangzeb and a delegation of the ITFC, a member of the Islamic Development Bank (IsDB) Group that aims to advance trade among Organization of Islamic Cooperation (OIC) member countries, in Washington.
The Pakistani Finance Minister is currently in the United States to attend the annual World Bank and International Monetary Fund (IMF) meetings, where global finance leaders have convened to address challenges such as sluggish international growth, managing debt distress and financing the transition to green energy.
“He appreciated ITFC’s support for providing commodity financing worth USD 3 billion through a Framework Agreement over the next three years, including the immediate provision of USD 269 million through a mix of direct financing and syndication,” the statement issued by the Pakistani authorities said.
During the meeting, the ITFC delegation, led by its CEO Eng. Hani Salem Sonbol, expressed its commitment to diversify its portfolio in Pakistan, according to the PID. The Pakistani finance minister assured his government’s full support in this regard.
Meanwhile, Finance Minister Muhammad Aurangzeb held a meeting with the President of the Islamic Development Bank Dr. Muhammad Sulaiman Al Jasser in Washington.
He acknowledged the Bank’s role as a reliable partner in Pakistan’s progress and appreciated its financing in various sectors including energy, transportation, education, and health.
Muhammad Aurangzeb lauded Bank’s investment in the Mohmand Dam, along with other members of the Arab Coordination Group, as a model for co-financing similar or larger projects in the future.
The finance minister also held a meeting with the leadership of Mashreq Bank. He appreciated the Bank’s longstanding partnership with Pakistan and highlighted the performance of the economy over the past year.
Aurangzeb expressed satisfaction that the Bank is expanding its operations in Pakistan and would soon launch a new office.
Meanwhile, Muhammad Aurangzeb also held a meeting with the representatives of JP Morgan Bank in Washington.
He provided an overview of the improvements in Pakistan’s economic outlook and emphasized the importance of the IMF’s Extended Fund Facility for lending permanence to macroeconomic stability and executing structural reforms.
The finance minister highlighted significant reforms in taxation, privatization, and the overhauling of state-owned enterprises. He also expressed Pakistan’s resolve to tap into International Capital Markets through the issuance of its inaugural Panda Bond.
Separately, Aurangzeb attended a roundtable with institutional investors organized by Jefferies International, where he briefed the investors on positive economic indicators of Pakistan, according to Pakistani state media.
He also attended a meeting of IMF Managing Director Kristalina Georgieva with finance ministers, central bank governors, and heads of regional financial institutions in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region.
Earlier, Finance Minister Muhammad Aurangzeb hinted State Bank of Pakistan (SBP) might further slash interest rate in November’s Monetary Policy.
“SBP has cut its benchmark interest rate for three consecutive meetings by 450 basis points to 17.5 per cent from a record 22 per cent. The next meeting on Nov 4 may see the central bank reduce the policy rate, Muhammad Aurangzeb in an interview with Bloomberg in Washington on the sidelines of the IMF meeting. NNI
