Document background
The Trade Finance Agreement serves as the primary legal framework for trade finance facilities in Pakistan, establishing the relationship between financial institutions and businesses engaged in domestic and international trade. This document is essential when companies require financing for their trade operations, including import/export activities, working capital for trade cycles, and trade-related guarantees. The agreement must comply with Pakistani banking regulations, particularly those set by the State Bank of Pakistan, and may include provisions for Islamic banking compliance where required. It covers crucial aspects such as facility types, limits, security arrangements, utilization procedures, and regulatory compliance requirements. The document is designed to protect both the lender's interests through proper security arrangements and the borrower's trading activities by providing clear operational guidelines.
