Islamic Trade Financing Corporation to Provide Pakistan with $3 Billion Loan
The Islamic Trade Financing Corporation (ITFC) has announced a substantial $3 billion loan to Pakistan, as revealed in an official statement on Thursday. This agreement follows a meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and an ITFC delegation in Washington.
The loan will be disbursed over the next three years, with an initial tranche of $270 million set to be released to Pakistan shortly. During the meeting, ITFC CEO Engineer Hani Salem Sonbol was present, and the finance minister expressed gratitude for the financing agreement.
In a related discussion, Aurangzeb emphasized the importance of the International Monetary Fund (IMF) integrating social protection measures into its lending practices. He made this statement during a meeting with the IMF’s Managing Director, along with Finance Ministers, Central Bank Governors, and leaders from regional financial institutions across the Middle East, North Africa, Afghanistan, and Pakistan (MENAP).
The finance minister urged the IMF to enhance climate resilience financing and to continue expanding mechanisms for debt relief and concessional financing to support vulnerable nations. He also welcomed the IMF’s efforts to address emerging challenges, including climate risks and complex debt restructuring, in its review of the Low-Income Countries Debt Sustainability Framework (LIC-DSF).
Additionally, Aurangzeb participated in a roundtable with institutional investors organized by Jefferies International, where he highlighted Pakistan’s positive economic indicators, driven by a successful Stand-By Arrangement (SBA).