IFC, member of the World Bank Group, and BankIslami Pakistan Limited on Tuesday signed an agreement that will help local companies access global import and export markets, spurring trade, production, economic growth and job creation. The agreement sees BankIslami joining IFC’s Global Trade Finance Program, which promotes trade in emerging markets by supporting the flow of goods and services. Under this agreement, IFC will support BankIslami’s trade finance business by providing partial or full guarantees for individual trade transactions. “IFC guarantees will help Pakistan’s private sector access global markets and in turn contribute to economic growth and job creation,” said BankIslami Chief Executive Officer Hasan Bilgrami. “It is a testament to the strong business franchising and expanding market share of BankIslami in general and in the Islamic banking sector in particular,” he said. Since the trade finance program’s inception in Pakistan in 2006, IFC has provided more than 3,500 guarantees worth $1.74 billion to financial institutions, helping to drive trade and create jobs. “Trade finance is the engine of an estimated $14 trillion in annual global commerce,” said IFC Director for Financial Markets and PE Funds for Europe, Central Asia, Middle East and North Africa K Aftab Ahmed. “With easy and affordable access to trade finance, local entrepreneurs can reach new markets, grow their businesses, and hire more employees,” he added. Close to 85 percent of IFC’s trade finance guarantees in Pakistan covered the import of products which are crucial for sustainable economic growth. Those included food and raw materials used in industrial production. Pakistan is a priority country for IFC. During the last three years, IFC has ramped up its investments and advisory services work in the country, supporting the development of Pakistan’s private sector.
