Meezan Bank partners with ITFC to support private sector

Pakistan’s leading Islamic bank, Meezan Bank, has signed a strategic partnership with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group. This partnership is established under the ITFC Letter of Credit (LC) confirmation product.

The ITFC LC confirmation product helps facilitate trade by providing assurance to exporters and issuing banks, securing payments, and eliminating credit risks.

It will support private sector clients, including small and medium-sized enterprises (SMEs), by working with local banks in Organisation of Islamic Cooperation (OIC) member countries to facilitate import transactions.

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 sides. Meezan Bank is the first bank in Pakistan to partner with ITFC for the LC confirmation facility.

This Islamic trade facility will allow Meezan Bank to extend its geographical coverage by leveraging the ITFC network in both member and non-member countries. It will also enable the bank to handle longer-term LC Confirmation transactions, ranging from 6 to 12 months.

Syed Amir Ali emphasized the importance of this partnership, stating, "Today marks a significant milestone in our business relationship with ITFC as we solidify our partnership. This arrangement reinforces our bank's commitment to reliability, stability, and financial excellence. The Letter of Credit Confirmation Agreement strengthens our position in the market, enabling us to capitalize on new opportunities and facilitate international Islamic trade."

M. Nazeem Noordali expressed pride in strengthening the partnership with Meezan Bank, saying, "We are proud to strengthen our partnership with Meezan Bank through this Letter of Credit Confirmation Agreement, which reflects our commitment and support to private sector clients in our member countries."