 has signed an Issuing Bank Agreement (IBA) with the International Finance Corporation.){kind=link}
Islamabad, Pakistan, May 07, 2024 – Dubai Islamic Bank Pakistan Limited (DIBPL) has signed an Issuing Bank Agreement (IBA) with the International Finance Corporation (IFC) to support international trade in Pakistan.
Under the agreement, IFC will guarantee payment of DIBPL obligations to support their trade finance transactions with tenors of up to one year. This will strengthen DIBPL’s strategic plan to grow its international trade business and enhance correspondent banking relationships focused on international trade within the country.
“This agreement will further streamline and ease the process for trade finance in Pakistan. Dubai Islamic Bank Pakistan remains committed to supporting businesses focused on international trade and we believe this partnership with IFC will be instrumental in achieving this goal,” said Mr. Junaid Ahmed, CEO of DIPBL.
The agreement falls under IFC’s Global Trade Finance Program (GTFP), which extends and complements the capacity of banks to deliver trade financing by providing risk mitigation in new or challenging markets where trade lines may be constrained.
“Trade is essential for economic growth and a key driver of opportunities for local enterprises. We are pleased to support Dubai Islamic Bank Pakistan Limited in its efforts to boost international trade and we believe this partnership will help foster a trade ecosystem in the country that strengthens supply chains, spurs productivity, and creates jobs,” said Momina Aijazuddin, Regional Head for the Financial Institutions Group at IFC.
IFC’s GTFP has been operating in Pakistan since 2005. Pakistan is now one of the top markets for the program with a total GTFP commitments of US$6.6 billion since inception and US$1.4 billion for FY23. With the recent joining of DIPBL, IFC has now 10 partner issuing banks in Pakistan who will benefit from the program.
About Dubai Islamic Bank Pakistan Limited:
DIBPL is a wholly owned subsidiary of Dubai Islamic Bank PJSC. DIBPL was incorporated in Pakistan as an unlisted public limited company on May 27, 2005 to carry out the business of an Islamic Commercial Bank in accordance with the principles of Islamic Shari’a. DIBPL commenced its operations as a scheduled Islamic Commercial Bank with effect from March 28, 2006. The Bank is principally engaged in corporate, commercial, consumer, investing and retail banking. VIS Credit Rating Company Limited on June 26, 2023 has reaffirmed the Bank’s medium to long-term rating at ‘AA’ (Double A) and the short-term rating at ‘A-1+’ (A-One Plus) with stable outlook. DIBPL is operating through 235 branches as at March 31, 2024.
About IFC:
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.