Karachi: Meezan Bank, Pakistan’s leading Islamic bank, has entered into a strategic partnership with the International Islamic Trade Finance Corporation (ITFC), a subsidiary of the Islamic Development Bank (IsDB) Group. The collaboration is underpinned by the ITFC’s Letter of Credit (LC) Confirmation product, which aims to facilitate trade flow by providing exporters and issuing banks assurance of payment, thereby mitigating credit risks. This initiative is set to bolster the private sector, including small and medium-sized enterprises (SMEs), by collaborating with local banks in Organization of Islamic Cooperation (OIC) member countries to support various import transactions.

According to Meezan Bank Limited, the agreement was signed by Nazeem Noordali, Chief Operating Officer of ITFC, and Syed Amir Ali, Deputy Chief Executive Officer of Meezan Bank, in the presence of executives from both organizations. Notably, Meezan Bank is the first institution in Pakistan to collaborate with ITFC for the LC Confirmation facility.

This Islamic trade facility will empower Meezan Bank to expand its geographical reach by utilizing the ITFC network in both member and non-member countries. Additionally, it will enable the bank to manage longer-term LC Confirmation transactions, ranging from six to twelve months.

Syed Amir Ali, Deputy Chief Executive Officer of Meezan Bank, emphasized the significance of this collaboration, stating that it marks a pivotal milestone in their business relationship with ITFC. He noted that the arrangement underscores the bank’s dedication to reliability, stability, and financial excellence. Ali further commented that the Letter of Credit Confirmation Agreement enhances their market position, allowing them to seize new opportunities and promote international Islamic trade.

M. Nazeem Noordali, Chief Operating Officer of ITFC, shared his perspective on the partnership, expressing pride in strengthening ties with Meezan Bank through the Letter of Credit Confirmation Agreement. He highlighted that this reflects ITFC’s commitment to supporting private sector clients in its member countries.