Islamic microfinance branch launched

KARACHI: Meezan Bank and SAFCO Microfinance Company Private Limited (SMCL) have launched the country's first Islamic microfinance branch in Hyderabad, a statement said on Tuesday.

The branch, branded as 'Yaqeen', will offer Shariah-compliant microfinance services to low-income and marginalized segments of the society, aiming to promote financial inclusion and social welfare in line with Islamic principles.

Meezan Bank has provided Rs100 million financing, technical support, product development, capacity building, and training to Microfinance Company Private Limited, a conventional microfinance institution that is undergoing a gradual conversion to Islamic microfinance.

Ahmed Ali Siddiqui, Group Head Shariah Compliance at Meezan Bank, said he was delighted with the partnership with SMCL and the inauguration of the Islamic microfinance branch. "We are fully committed to providing our support to SMCL's mission of evolving into a comprehensive Islamic Microfinance Institution (MFI)," he said.

"As the country’s Premier Islamic bank, we are keen on extending our expertise in developing a strategic business conversion plan and expansion of Islamic finance network for SMCL, an endeavour that aligns with our shared vision for fostering financial inclusivity, ethical banking practices, and promotion of Shariah-compliant financing in Pakistan," he added.