Pakistan:- Dubai Islamic Bank Pakistan Limited (DIBPL) has signed Issuance Banking Agreement (IBA) with International Finance Corporation (IFC) to support international trade in Pakistan.
Under the agreement, IFC will guarantee payment of DIBPL’s obligations to support trade finance operations and tenants for up to one year. This will strengthen DIBPL’s strategic plan to develop international trade business and develop correspondent banking relationships focused on international trade within the country.
“This agreement will further facilitate and facilitate trade finance in Pakistan. Dubai Islamic Bank is committed to supporting Pakistan’s international trade-oriented businesses and we believe that the partnership with IFC will be important to achieve this goal,” said Junaid Ahmed, CEO of DIPBL.
This agreement is part of the IFC’s Global Trade Finance Program (GTFP), which expands and complements the bank’s ability to provide trade finance by de-risking new or challenging markets where trade routes may be restricted.
“Trade is important for economic growth and a key driver of opportunities for local businesses. We are pleased to support Dubai Islamic Bank Pakistan Limited’s efforts to promote international trade and believe that this partnership will help develop a trade ecosystem in the country that strengthens supply chains, increases productivity and creates jobs, “said Momina Aijazuddin, Regional Head for Financial Institutions. Group at IFC.
IFC’s GTFP has been working in Pakistan since 2005. Pakistan has now become one of the top markets for the program with GTFP commitments of $6.6 billion since its inception and $1.4 billion for FY23. With the recent addition of DIPBL, IFC has 10 banking partners in Pakistan who will benefit from this program.
