The Islamic Trade Financing Corporation (ITFC) has announced a $3 billion loan for Pakistan, as revealed in an official statement on Thursday.
This development followed a meeting in Washington between Pakistan’s Finance Minister Muhammad Aurangzeb and the ITFC delegation, which included CEO Engineer Hani Salem Sonbol.
The $3 billion loan will be disbursed over the next three years, with an initial allocation of $270 million set to be provided to Pakistan shortly. Minister Aurangzeb expressed gratitude for the commodity financing agreement and assured full government support for the initiative.
In a related context, Minister Aurangzeb recently highlighted the importance of incorporating social protection measures into the International Monetary Fund’s (IMF) lending frameworks. This statement was made during a meeting with the IMF Managing Director, attended by finance ministers, central bank governors, and heads of regional financial institutions from the Middle East, North Africa, Afghanistan, and Pakistan (MENAP).
During this meeting, he urged the IMF to prioritize enhancing climate resilience financing and to expand debt relief and concessional financing mechanisms for vulnerable countries.
Aurangzeb welcomed the IMF’s recognition of emerging challenges like climate-related risks and complex debt restructuring in its review of the Low-Income Countries Debt Sustainability Framework (LIC-DSF).
Additionally, Minister Aurangzeb participated in a roundtable discussion with institutional investors organized by Jefferies International.
He briefed the attendees on Pakistan’s positive economic indicators, attributing this progress to the successful Stand-By Arrangement (SBA). This initiative reflects the government’s ongoing efforts to stabilize the economy and attract foreign investment while addressing critical social and environmental challenges.
