KARACHI, Feb 10: The International Finance Corporation (IFC) and ABN Amro on Monday signed a $80 million trade enhancement facility to help private sector Pakistani importers and exporters with financing to import capital goods and raw materials.

The three-year revolving facility give businesses in Pakistan better access to letters of credit confirmations by guaranteeing documentary credits originated by selected commercial banks.

The facility will initially include five banks in Pakistan namely ABN Amro Pakistan, Askari Bank, Metropolitan Bank, Soneri Bank, Union Bank.

IFC will guarantee 50 per cent of each transaction, it was further pointed out.

Karl Voltaire, IFC’s Director for Global Financial Markets was of the view that the facility will enhance the availability of trade finance to Pakistani importers and exporters by helping supplement country limits currently available to commercial banks operating in Pakistan. It will help maintain trade finance flows to the private sector in Pakistan at a time when such finance is urgently needed.

Sami Haddad, Director of the Middle East and North Africa maintained that given the various adverse external shocks, it is particularly important to maintain trade flows as they contribute significantly to the level of economic activity in Pakistan.

Abraham Chacko, ABN Amro’s Regional Director, Trade Sales South East Asia-Australia Global Trade and Advisory, praised the performance of Pakistan and said that the foreign exchange reserves have almost touched 10 billion dollars mark.

He expressed the hope that the trade enhancement facility will prove very much beneficial for the country. Naved A. Khan, ABN Amro’s Country Representative, Pakistan, said that this facility is first of its kind in the country.

He was optimistic that it will help strengthen Pakistan’s ability to transact in the international arena.—APP