Islamabad, Pakistan, February 10, 2010—IFC,
a member of the World Bank Group, announced today that over the past six
months it provided Pakistani banks with $202 million (over 17 billion PKR)
in trade finance guarantees, helping Pakistan increase cross-border trade,
benefiting many of its important business sectors.
Thanks to support from IFC’s Global Trade Finance Program, Pakistani banks
executed trade transactions worth roughly $202 million between July and
December 2009, an almost 80 percent increase from the same time period
in the previous year. Since the inception of the program in 2006, IFC has
executed trade finance transactions of about $537 million in Pakistan.
Pakistan received the largest amount of trade finance support for this
time period from IFC’s Global Trade Finance Program, followed by Lebanon
which executed trade transactions worth over $44 million.
K. Aftab Ahmed, IFC's Regional Manager for Global Financial Markets, said:
“IFC has greatly increased its investments and trade finance activity
in the past year. Pakistan was the second highest recipient of IFC trade
finance support in the world after Brazil in the last half of 2009. IFC
is currently supporting 11 issuing banks in Pakistan that are vital to
ensuring the sustainability of cross border trade."
Sectors and products in Pakistan that benefited from this support include:
· Fertilizer and agricultural goods
· Iron and steel
· Plastics and chemicals
IFC’s Global Trade Finance Program extends and complements the capacity
of banks to deliver trade financing by providing risk mitigation in new
or challenging market conditions where trade lines might be constrained.
Trade guarantees have become especially important during the recent global
economic turbulence, helping to maintain market confidence and to keep
IFC trade finance activity in the rest of the Middle East and North Africa
region also continues to grow. IFC has provided almost $1.5 million in
trade finance support to Afghanistan International Bank, which in July,
2009 became the first bank in Afghanistan to join IFC’s Global Trade Finance
IFC is the only international financial institution focused exclusively
on the private sector, the engine of sustainable development in emerging
markets. Along with IBRD, it is currently seeking a capital increase
to strengthen its ability to create opportunity for the poor in developing
countries—including by supporting increased trade flows in the Middle
East and North Africa.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.