FBL partners with IFC to establish trade finance guarantee facility

KARACHI: Faysal Bank Limited (FBL) has formed a new strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group, under the IFC’s Global Trade Finance Programme (GTFP), a statement said on Wednesday.

As part of this partnership, the IFC will explore the possibility of establishing a trade finance guarantee facility for FBL, aimed at significantly enhancing the bank’s trade finance programme and strengthening its ability to meet the growing needs of its clients.

To mark this milestone, a signing ceremony took place on Sept 25, where an engagement letter between FBL and the IFC was signed. The event was attended by Regional Director for the Middle East, Pakistan & Afghanistan at IFC Khawaja Aftab Ahmed along with his team.

This trade finance guarantee facility would enable FBL to expand its capacity for providing trade-related services to local businesses, helping them engage in international trade with greater ease and security. By leveraging the IFC’s global network and expertise, this facility also has the potential to promote further growth in the trade sector.

President & CEO of Faysal Bank Limited Yousaf Hussain appreciated the IFC’s continued commitment to the Pakistan market and said, “We are pleased to partner with the IFC, under its Global Trade Finance Programme, further enhancing our capacity on trade financing. The facility will act as a stepping stone into a multifaceted strategic engagement with the IFC.” The IFC’s GTFP has been operating in Pakistan since 2005. Pakistan is now one of the top markets for the programme with total GTFP commitments of $6.6 billion since its inception and $1.4 billion in FY23.

This collaboration with the IFC underscores FBL’s commitment to expanding its international trade capabilities and offering innovative, Shariah-compliant solutions to meet the evolving demands of its clients.