The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with Pakistan’s Bank AL Habib Limited (BAHL), to support the import of essential goods and equipment into the country.

IFC in a statement on Thursday announced that it is enhancing its trade facility to the bank to enable it to support the longer-term imports of capital goods—including vital equipment, machinery and tools—under its Global Equipment Finance Facility (GEFF).

IFC has extended guarantees by up to five years for selected partners for the imports of capital goods, with a focus on climate change.

The project will enable BAHL to issue a letter of credit for up to 37 months for the import of critical capital goods into Pakistan, which has been constrained because of the pandemic.

“IFC's support will enhance our existing trade limits to accommodate higher volumes of trade finance and extend our capacity to support the deliveries of vital capital goods to meet our clients' import and business needs,” said Mansoor Ali Khan, BAHL CEO.

IFC said that Bank Al Habib is a long-term partner in its Global Trade Finance Program (GTFP), which supports trade in emerging markets by providing partial or full guarantees against underlying trade instruments and covering the payment risk of participating issuing banks.

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"Trade finance is essential to enable the flow of goods and services in and out of the country, which is vital to support businesses and sustain livelihoods," said Khawaja Aftab Ahmed, IFC's Incoming Regional Director for the Middle East, Pakistan and Afghanistan.

"IFC's support will enable our longstanding partner Bank AL Habib Limited to better support its clients importing critical goods in this challenging post-pandemic recovery period and help foster sustainable economic growth."