To help finance exporters and importers of the South Asian nation
Asian Development Bank (ADB) has signed trade financing agreements with Bank Alfalah, Faysal Bank, Habib Metropolitan Bank, and United Bank in Pakistan. The agreements are intended to help the direct finance to exporters and importers.
Reportedly, ADB has signed similar agreements in May with five other Pakistan banks. The $1 billion Trade Finance Facilitation Program (TFFP) provides finance and guarantees through, and in conjunction with, international and developing member country banks to support trade transactions in developing countries.
Philip Erquiaga, director general of private sector operations department at ADB, said: “Trade is an essential tool in boosting economic growth, creating jobs and attracting private capital, thereby reducing poverty levels. We are pleased to have increased to nine the number of Pakistan banks participating in our Trade Finance Facilitation Program (TFFP).”
Rune Stroem, country director of Pakistan resident mission at ADB, said: “ADB expects Pakistan’s economy to grow by 2% this year, a slowdown from growth of 4.1% last year and 6.8% in 2007. ADB is committed to helping Pakistan weather the worldwide crisis and laying the foundations for longer-term growth by providing support to its numerous importers and exporters.”