Asian Development Bank (ADB) and the OPEC Fund for International Development (OFID) signed a risk distribution agreement to support trade in emerging Asian countries, including Pakistan under ADB’s Trade Finance Program (TFP).
The agreement will support an estimated incremental trade flow between $800 million and $1.2 billion in countries such as Bangladesh, Mongolia, Pakistan, Sri Lanka and Uzbekistan, and other markets where financing from private financial institutions is limited.
“By supporting trade transactions in emerging Asia, OFID and ADB will help create economic growth and jobs,” said Philip Erquiaga, ADB’s Director General for Private Sector Operations Department. According to ADB press statement received here Thursday, ADB’s TFP fills private sector market gaps in trade finance by providing guarantees and loans through over 200 partner banks to support trade.