ADB, DIBPL strike trade finance deal

ISLAMABAD: The Asian Development Bank’s (ADB) Trade and Supply Chain Finance Program (TSCFP) has signed an agreement with Dubai Islamic Bank Pakistan Limited (DIBPL) to support trade in Pakistan, the multilateral lender said on Friday.

ADB in its statement said it would provide guarantees to help DIBPL expand its trade finance business in Pakistan. TSCFP has been operating in the country since 2008. The addition of DIBPL increases TSCFP’s Pakistan partner banks to 13 and makes Pakistan one of the program’s most promising markets.

To date, the program has supported more than $17.3 billion in trade in Pakistan through 5,891 transactions. This support has predominantly been provided for steel, polypropylene, fertilizers, and machinery for garments and weaving. In 2020, TSCFP supported 650 transactions in Pakistan valued at $1.2 billion, with 51 percent cofinanced with commercial banks.

“This further demonstrates our commitment to supporting trade in Pakistan,” said Nana Khurodze, TSCFP Relationship Manager for Pakistan.

“We are delighted to work with DIBPL to support its initiatives with trading companies, including providing small and medium-sized enterprises with access to global trade.”

This agreement would further streamline and ease the process for trade finance giving a boost to business activities in Pakistan, he said.

“Our partnership with ADB shows trust in Dubai Islamic Bank Pakistan as an entity. We aim to work towards increasing trade flows to the country,” Dubai Islamic Bank Pakistan CEO Junaid Ahmed said.