Meezan Bank Partners with ITFC for LC Confirmation Product

Meezan Bank, Pakistan’s leading Islamic bank, has signed a strategic partnership with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group. This collaboration involves the ITFC Letter of Credit (LC) Confirmation product, which aims to facilitate trade flows by assuring exporters and issuing banks of secure payments, thereby eliminating credit risks.

The new LC Confirmation product will support private sector clients, including small and medium enterprises (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 organizations. Meezan Bank is the first bank in Pakistan to partner with ITFC for this facility.

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

Syed Amir Ali, Deputy Chief Executive Officer of Meezan Bank, highlighted the significance of this cooperation, 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, 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.”

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