Karachi: In a strategic move to bolster its international trade finance capabilities, Meezan Bank, Pakistan’s leading Islamic bank, has signed an agreement with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group. The collaboration focuses on the ITFC Letter of Credit (LC) Confirmation product, which aims to facilitate trade by providing assurance to exporters and issuing banks, mitigating credit risks, and supporting private sector clients, including small and medium enterprises (SMEs).

According to Meezan Bank Limited, the agreement marks a significant milestone as Meezan Bank becomes the first bank in Pakistan to partner with ITFC for the LC Confirmation facility. This collaboration was formalized with the signing of the agreement by Nazeem Noordali, Chief Operating Officer of ITFC, and Syed Amir Ali, Deputy Chief Executive Officer of Meezan Bank, witnessed by executives from both organizations.

The Islamic trade facility will enable Meezan Bank to expand its geographical reach, leveraging the extensive ITFC network across both member and non-member countries. It will also allow the bank to handle longer-term LC Confirmation transactions, ranging from six to twelve months.

Syed Amir Ali emphasized the importance of this partnership, stating that it reinforces Meezan Bank’s commitment to reliability and financial excellence. The LC Confirmation Agreement will strengthen the bank’s market position, open new opportunities, and enhance its ability to facilitate international Islamic trade.

M. Nazeem Noordali of ITFC expressed pride in the strengthened partnership with Meezan Bank, highlighting ITFC’s commitment to supporting private sector clients within its member countries through this agreement.