Pakistan, IFC discuss $500m trade financing for oil imports

Agreement in principle for $500m revolving trade financing facility, to be gradually expanded to $1b.

LONDON: Pakistan and the International Financial Corporation (IFC) have agreed in principle on a potentially $500 million revolving trade finance facility for Pakistan to import oil.

According to a release, the Finance Minister had met with a delegation from IFC, Citi Bank and Habib Bank Limited at the Pakistan High Commission in UK on Thursday.

Dar noted that it was rare for the IFC to agree to become part of a trade facility for the public sector and that it reflected the confidence that the IFC and other consortium members have in the incumbent government. The IFC is a member of the World Bank group.

The agreement, which is yet to be subject to due process, will provide the trade finance facility worth $500 million with IFC the main contributor. It could potentially be expanded to $1 billion. However, the facility shall be subject to a cost of about four per cent above Libor.

Citibank helping build e-govt systems

Dar was also briefed regarding the e-government initiatives taken by the Citibank especially in the national saving organisation and the National Database Regulatory Authority.

Citibank is reforming the system for savings holders and pensioners.