The Islamic International Trade Finance Corporation (ITFC) has signed a $600 million financing agreement with Pakistan today, aiming to enhance relations, support infrastructure, and sustainable development.
The corporation, a member of the Islamic Development Bank Group, stated that the agreement reflects its commitment to support Pakistan's energy and agriculture sectors, paving the way for sustainable economic growth, as reported by the Saudi Press Agency.
It's worth noting that the Islamic Development Bank Group has allocated $5.4 billion for 77 projects across 24 member countries, according to statements made by its president, Mohammed Al-Jasser, to "Middle East Economy."
In January 2023, the Islamic Development Bank pledged $4.2 billion to Pakistan over three years to assist the country in financing its reconstruction plan following devastating floods that submerged a third of the country in the summer, as revealed by Pakistan's Minister of Information, Marriyum Aurangzeb, at the time.
Pakistan is facing challenging economic conditions that have depreciated its local currency and depleted its foreign exchange reserves, forcing heavy reliance on International Monetary Fund (IMF) support.
It has received 23 IMF rescue packages since its independence in 1947, making it one of the largest recipients of IMF assistance globally.
The country faces external debt repayment obligations of $22 billion in the fiscal year starting in July, nearly three times its foreign exchange reserves. It is also grappling with the highest inflation levels in Asia, currently exceeding 20%.
Last month, Pakistan secured preliminary approval from the IMF for a final tranche of $1.1 billion from a $3 billion loan program.
Pakistan is also taking steps to attract investments and sell assets, including Pakistan International Airlines, state-owned, which has not turned a profit in nearly two decades.
The government aims to sign a share purchase agreement for a stake ranging from 51% to 100% by June, according to a document published on the Privatization Commission's website, the agency responsible for asset sales.
Follow the latest news on Google News
