ISLAMABAD, June 9: The Islamic Development Bank (IDB) would provide $100 million for import of crude oil and petroleum products under import trade financing operation (ITFO), an official statement said.

Secretary Economic Affairs Division, Dr Waqar Masood Khan, secretary Ministry of Petroleum Ahmad Waqar, Executive Director, State Bank of Pakistan, Deputy Managing Director, Pak Arab Refinery-Parco, and Dr. Ahmad Mohamed Ali, President Islamic Development Bank (IDB), Saudi Arabia signed two agreements in this regard.

Federal Finance Minister Shaukat Aziz was also present on the occasion. He welcomed Dr Ahmed Mohamed Ali and said IDB was a consistent supporter of Pakistan's economic reforms and a major development partner.

He updated Dr Ali on the strong economic performance during this fiscal year with particular reference to higher economic growth rate of 6.4 per cent achieved. He said investment in infrastructure, rural sector and good governance were major priorities of the government.

Dr Ali congratulated the Finance Minister for Pakistan's strong economic performance and assured IDB's enhanced support to finance infrastructure as well as trade financing.

Pak Arab Refinery Limited (Parco) has been designated as the executing agency for the imports. The Government of Pakistan would purchase the commodity from the member countries of the Islamic Development Bank.

Parco shall be fully and solely responsible for the quality, condition, selection and specifications of the goods and for deciding the need for, and the extent and the manner of transaction and storage of the product. IDB would provide trade financing to Pakistan on continuous basis.

Pakistan has long-lasting and strong relations with the IDB and had enefited from the IDB financing and assistance for infrastructure projects, social sector development projects, industrial enterprises, equity financing in corporate institutions, trade financing for import of crude oil, petroleum products, fertilizers, palm oil, etc.

The IDB has provided financial assistance to Pakistan for a number of projects of national importance, like: Ghazi Barotha Hydro Power Project, Rawat Sub Station Project, International Islamic University, Islamabad, Rawalpindi Medical College Complex, Greater Hyderabad Sewerage Project and Chagi Water Management Project, etc.