Meezan Bank opens rupee Vostro account for Kazakhstan’s Freedom Bank

Meezan Bank has signed an agreement with Freedom Bank Kazakhstan to establish a Pakistani-rupee Vostro account, expanding correspondent banking links between the two institutions, the bank has said.

The agreement was signed on Feb. 4 at a ceremony at the Serena Hotel in Islamabad, attended by senior management and officials from both banks.

Under the arrangement, Meezan Bank will provide PKR Vostro account services to Freedom Bank Kazakhstan, allowing for the settlement of trade and commercial transactions, improved liquidity management and greater operational efficiency for businesses and financial institutions operating between Pakistan and Kazakhstan.

A Vostro account is an account that one bank holds on behalf of a foreign bank in the local currency, enabling cross-border transactions to be settled directly without routing payments through third-country currencies.

Meezan Bank said the rupee-denominated Vostro account will help streamline trade-related payments and remittances between the two countries by improving settlement efficiency and facilitating smoother cross-border banking transactions.

“The establishment of this PKR Vostro account highlights Meezan Bank’s continued efforts to expand its global correspondent banking footprint and strengthen cross-border payment infrastructure,” said Muhammad Abdullah Ahmed, group head of transaction and international banking at Meezan Bank.

He said the arrangement would support smoother rupee settlements, enhance transaction efficiency and provide secure and compliant banking channels for partner banks and business communities in both markets.

Timur Agdavletov, first deputy chairman of the management board of Freedom Bank Kazakhstan, said the agreement would strengthen the bank’s international banking platform and improve its ability to support clients engaged in trade and cross-border business with Pakistan.

“This represents an important step in establishing PKR clearing and settlement capabilities,” Agdavletov said, adding that the bank looked forward to building a strong correspondent relationship to deliver greater convenience and efficiency for businesses.

Both banks said the collaboration is expected to support bilateral trade flows and financial cooperation, while reinforcing commitments to international banking standards, regulatory compliance, transparency and risk management practices.