By Omer Bilal ISLAMABAD, November 10 (INP-WealthPK): The International Islamic Trade Finance Corporation (ITFC) — a subsidiary of the Islamic Development Bank (IsDB) — would make available this month about $761.5 million of syndicated Murabaha financing facility to Pakistan. A financing agreement of $761.5 million has been signed between ITFC and Government of Pakistan for the import of crude oil, refined petroleum products, LNG etc. The facility has been made effective immediately and ready for utilisation by Pakistan State Oil Company Ltd (PSO), Pak Arab Refinery Ltd (Parco) and Pakistan LNG Ltd (PLL) for import of oil and gas. This syndicated Murabaha financing facility is for a period of one year and part of the framework agreement signed with the ITFC in April 2018 for total envelop of $4.5 billion ($1.5 billion annually) for a period of three years. Originally, ITFC had agreed to provide the financing in a tranche of $300 million, however, the international financial institutions, part of this syndication, have enhanced the amount to $761.5 million keeping in view the growing economic condition of Pakistan. ITFC and GoP have also agreed to continue their cooperation in future to mobilise financial resources to support Pakistan in its endeavours to achieve its economic targets through the ITFC financing facility. The facility will also be helpful in financing oil and gas import bill of the country and easing pressure on foreign exchange reserves. This agreement also reflects confidence of international financial institutions in Pakistan’s economy and its future potential. The Ministry of Economic Affairs says ITFC chief has assured the minister that Pakistan remains the top priority for it to invest in trade financing and meet the country’s POL procurement requirements. The meeting also discussed how the ITFC can arrange financing for broader trade activities in Pakistan under commodity financing. ITFC had arranged two Warehouse Receipt Financing workshops in Islamabad and Karachi during 2019 in collaboration with the Economic Affairs Division and State Bank of Pakistan (SBP) and will provide technical assistance for capacity building in the agriculture sector. ITFC is a member of the IsDB Group. It was established with the primary objective of advancing trade among OIC (Organisation of Islamic Cooperation) member countries, which would ultimately contribute to the overarching goal of improving socio-economic conditions of the people across the world. ITFC had a limited portfolio of about USD 1billion of its own, and normally arranges funds from other private financial institutions. Some of the other major recipients of the ITFC trade facility include Indonesia, Egypt and Bangladesh. The facility is expected to provide relief in oil and gas import bill and ease pressure on foreign exchange reserves.