SCBP, IFC sign deal to boost trade finance in Pakistan

KARACHI: Standard Chartered Bank Pakistan (SCBP) has signed an un-funded risk-participation agreement with the International Finance Corporation (IFC), a member of the World Bank Group, to increase access to trade finance and working capital for Pakistani businesses.

The agreement, worth $200 million in Pakistani rupees equivalent, will see the IFC cover 50 percent of Standard Chartered's risk against short-term trade and working capital funded loan facilities for corporate clients based in Pakistan, the bank said in a statement on Monday.

The programme aims to leverage the long-standing relationship between Standard Chartered and IFC with export-based industries in Pakistan to enable the generation of foreign exchange inflows, which are critical for the sustainable growth of the country's economy.

The programme will also enhance the availability of trade and working capital loan facilities, including supply chain financing and sustainable finance product suites, for large-scale manufacturers, the statement said.

Sarmad Lone, head of Client Coverage, Corporate, Commercial and Institutional Banking (CCIB) for Standard Chartered in the Africa and Middle East region, said the agreement was the first of its kind between IFC and Standard Chartered in Pakistan and would help the bank support its client base and facilitate global trade.

"This partnership with IFC enables us to work around macroeconomic challenges and helps us support our client base and facilitate development of their business."