Meezan Bank Partners with ITFC to Strengthen Trade Finance, Facilitating International Islamic Trade for Pakistan’s Private Sector

The new arrangement aims to support import transactions for various clients, including small- and medium-sized enterprises (SMEs) across Organisation of Islamic Cooperation (OIC) member states.

Meezan Bank, Pakistan’s foremost Islamic financial institution, has entered into a strategic partnership with the International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank (IsDB) Group. The collaboration, under ITFC's Letter of Credit (LC) Confirmation product, will enhance trade flow and boost Pakistan's private sector by mitigating credit risks for exporters and local banks. The new arrangement aims to support import transactions for various clients, including small- and medium-sized enterprises (SMEs) across Organisation of Islamic Cooperation (OIC) member states.

This milestone partnership, signed by Nazeem Noordali, Chief Operating Officer of ITFC, and Syed Amir Ali, Deputy Chief Executive Officer of Meezan Bank, is a first for any bank in Pakistan under the ITFC’s LC Confirmation facility. The arrangement allows Meezan Bank to offer its clients a secure channel to conduct trade transactions by securing assurances from ITFC, effectively reducing credit risk in high-value trade.

“This agreement is a landmark in our ongoing relationship with ITFC and an affirmation of our commitment to financial stability and excellence,” said Syed Amir Ali. “With ITFC’s backing, we can now expand our reach in Islamic trade finance, capitalize on new opportunities, and support international transactions for clients in member and non-member countries alike, with the ability to process LC confirmations up to 12 months.”

Nazeem Noordali, COO of ITFC, expressed pride in solidifying the cooperation, noting, “This Letter of Credit Confirmation Agreement represents our commitment to empowering private sector clients across our member countries. By working with Meezan Bank, we strengthen the reliability of Islamic trade channels, promoting smoother import processes for enterprises.”

Through this partnership, Meezan Bank will leverage ITFC’s extensive network to extend its geographic reach and enhance its capability to manage longer-term LC confirmations, creating new avenues for growth in Pakistan’s trade sector while underscoring its standing in the international Islamic finance arena.