Meezan Bank inks agreement to join ITFC to support private sector

KARACHI: Meezan Bank has signed a new strategic partnership with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, under the ITFC letter of credit (LC) confirmation product, a statement said on Tuesday.

This product facilitates trade flow by allowing exporters and issuing banks to gain assurance from the 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.

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 long-term LC confirmation transactions (six to 12 months).

Deputy Chief Executive Officer of Meezan Bank Syed Amir Ali highlighted the impact of this cooperation: “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.”