BankIslami, EXIM Bank sign deal for Pakistan's first Shariah-compliant trade financing

Pakistan's BankIslami has signed a Memorandum of Understanding (MoU) with the Export-Import Bank of Pakistan (EXIM Bank), establishing the country's first Shariah-compliant trade and export finance partnership.

The deal aims to expand access to Riba-free trade finance for Pakistani exporters. It will cover credit insurance, credit risk management, digital solutions, and capacity building.

What is Pakistan's first Shariah-compliant trade finance partnership?

The BankIslami-EXIM Bank agreement is the first MoU of its kind in Pakistan to combine Islamic banking principles with trade and export finance.

It will give Pakistani exporters access to Riba-free financial tools across credit insurance, credit risk management, digital banking, and capacity-building services.

The framework links EXIM Bank's trade finance expertise with BankIslami's Shariah-compliant model. Both institutions aim to grow their trade footprint while serving Pakistan's wider export ecosystem.

It framework upholds the principles of Islamic finance and strengthens Pakistan's trade finance landscape by adding Shariah-compliant alternatives to conventional export financing.

What will the BankIslami-EXIM Bank partnership cover?

The MoU establishes a framework across four key areas. These include export credit insurance, credit risk management, digital solutions, and capacity building for exporters.

The stated goal is to bring Riba-free trade finance to a wider segment of Pakistan's business community. Both banks said the collaboration would help expand their respective trade portfolios.

The MoU was signed by Rizwan Ata, president and CEO of BankIslami, and Shahbaz H. Syed, president and CEO of EXIM Bank. The signing brought together senior executives from both banks.

BankIslami was also represented by Deputy CEO Imran H. Shaikh, Group Head Treasury and Financial Institutions Faisal Anwar, and Group Head Wholesale Banking Farrukh Aslam Chughtai.

EXIM Bank executives included Regional Business Manager (Central) Faiz M. Salman, Regional Business Manager (North) Farzana Adnan Alam, and Head of Operations Muhammad Muzammil Khan.

Ata described strengthening Pakistan's trade and export sector as "a national imperative." He said the partnership is designed to ensure Riba-free trade finance reaches the country's wider business community.

Ata added that the collaboration reflects a shared commitment to grow Pakistan's export footprint while keeping the financial system "free from Riba."

Syed said Pakistan's export sector holds "immense potential" that EXIM Bank is committed to unlocking through the right partnerships. He said the bank chose BankIslami for its Shariah-compliant framework.

He added that the collaboration combines EXIM Bank's trade finance expertise with BankIslami's Islamic finance model for “effective and accessible solutions” for Pakistani exporters.