Meezan Bank partners with ITFC to support private sector

Source: Pexels

This product facilitates trade flow by allowing exporters and issuing banks to gain assurance from ITFC to secure payment and thus eliminate credit risks.

It will support private-sector clients, including SMEs, by working with local banks in Organisation of Islamic Cooperation (OIC) member countries to facilitate various 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 enable Meezan Bank to extend geographical coverage by leveraging the ITFC network, both in member and non-member countries. It will also enable the bank to handle longer term LC Confirmation transactions (6 to 12 months).

Syed Amir Ali, deputy chief executive officer of Meezan Bank, highlighted the impact of this cooperation saying: “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 capitalise on new opportunities and facilitate international Islamic trade.”

M. Nazeem Noordali, chief operating officer of ITFC, expressed his views on the partnership: "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."