ITFC to Provide Pakistan with a $3 Billion Loan for Economic and Commodity Financing
The International Islamic Trade Finance Corporation (ITFC) has announced a $3 billion loan package for Pakistan to enhance the country’s commodity financing and economic stability. According to an official statement released on Thursday, the funding will be disbursed over the next three years. The announcement followed a significant meeting held in Washington between Pakistan’s Finance Minister Muhammad Aurangzeb and an ITFC delegation, led by CEO Engineer Hani Salem Sonbol.
In the initial phase of this financing agreement, ITFC will provide Pakistan with $270 million. This phased approach aims to bolster Pakistan’s economy by facilitating essential commodity imports and addressing immediate financial needs. Finance Minister Aurangzeb expressed his appreciation for this vital agreement and assured ITFC of full government support for its successful implementation.
Beyond the ITFC loan, Finance Minister Aurangzeb has been actively engaging with international financial institutions, emphasizing the need for sustainable development and financial resilience. During a recent meeting with the Managing Director of the International Monetary Fund (IMF) and other finance leaders from the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region, the minister highlighted the importance of social protection in IMF lending frameworks. He stressed the need for financing mechanisms that consider climate resilience, debt relief, and concessional financing to support developing economies like Pakistan.
The minister also took part in a roundtable with institutional investors organized by Jefferies International, where he presented Pakistan’s economic growth indicators. He highlighted the positive impact of the recent Stand-By Arrangement (SBA) with the IMF, which aims to stabilize Pakistan’s economic outlook and attract further investment.
This significant loan from ITFC marks a critical step toward reinforcing Pakistan’s economic stability and supporting its financing needs. With this support and continued focus on sustainable policies, Pakistan aims to foster growth, resilience, and long-term development.