SALMAN ABDUHOO LAHORE - The four international as well as local banks have provided trade finance coverage of 110 million euros to Ibrahim Fibers Limited to import modern German machinery for production of polyester staple fiber and polyester chips. Due to this trade finance the Ibrahim Fibers polyester production capacity will further be increased by 650 tons per day to 1,250 tons to make it more than double. The MCB Bank, Asian Development Bank, International Finance Corporation and Citibank have announced that they have completed a trade transaction that will help boost the textile industry in Pakistan, a sector that accounts for over 60 percent of the countrys industrial activity, said a press release, posted on the website of the ADB. It is to be noted that last year, ADBs Trade Finance Program supported over $600 million of cross-border trade in Pakistan. Over the past six months, IFC has provided Pakistani banks with $328 million in trade finance guarantees, a $125 million increase in guarantees compared to the same period last year. The trade financing helps Pakistan increase cross-border trade, and benefits many important business sectors. By providing guarantees that cover the payment risk in trade transactions, ADBs Trade Finance Programme and IFCs Global Trade Finance Programme help increase trade finance and the flow of goods to and from emerging market countries, the Press release said. It added that for this transaction, IFC assumed 30 percent of MCB Banks risk, and ADB 19 percent. Citibank managed the balance against the original letter of credit established by MCB Bank. The cover arranged by IFC, ADB, and Citibank portrays the high degree of confidence these leading global financial institutions have in MCB, said Farooq A Khan, Head of Trade Products Division at MCB Bank. Citi is proud to be a part of this transaction. Our widespread global network across more than 100 countries enables us to leverage those relationships to promote our common agenda to support and enhance private sector investment in Pakistan, said Arif Usmani, Citibanks Pakistan Country Officer. ADBs Trade Finance Program supports large volumes of trade business in Pakistan on its own, said Steven Beck, Head of Trade Finance in ADBs Private Sector Operations Department. However, cooperating with IFC, Citibank, and MCB was key to closing this challenging deal, a transaction that will support businesses and create jobs in Pakistan. By responding to the shifting needs of its partner banks, IFCs Global Trade Finance Program is helping stimulate trade flow and contributing to economic growth, said Scott Stevenson, Senior Manager of IFCs Global Trade Finance Program. The innovative partnership of this transaction will help stimulate one of the key sectors in Pakistans economy.