Dubai Islamic Bank Pakistan Limited has signed a significant agreement with International Finance Corporation to support international trade in Pakistan. This partnership aims to streamline trade finance processes and empower local businesses.
The agreement, known as an Issuing Bank Agreement (IBA), involves IFC providing guarantees for DIBPL’s trade finance transactions for up to one year. This will strengthen DIBPL’s efforts to expand its international trade business and build stronger relationships with correspondent banks focused on international trade within Pakistan.
“This collaboration will simplify and expedite trade finance processes in Pakistan,”
said Mr. Junaid Ahmed, CEO of DIBPL.
“DIBPL remains dedicated to supporting businesses engaged in international trade, and we believe this partnership with IFC will be crucial in achieving this objective.”
The agreement leverages IFC’s Global Trade Finance Program (GTFP). This program helps banks expand their trade finance capabilities by mitigating risks in emerging markets where traditional trade financing might be limited.
“Trade is a cornerstone of economic growth and creates opportunities for local businesses,”
said Momina Aijazuddin, Regional Head for the Financial Institutions Group at IFC.
“We are delighted to support Dubai Islamic Bank Pakistan Limited in its endeavors to enhance international trade. This partnership has the potential to foster a robust trade ecosystem in Pakistan, strengthening supply chains, boosting productivity, and creating jobs.”
The IFC’s GTFP has been a key player in Pakistan’s trade finance landscape since 2005. Pakistan has become a leading market for the program, with total GTFP commitments exceeding US$6.6 billion since its inception and US$1.4 billion allocated for FY23. With DIBPL joining the program, the number of partner issuing banks in Pakistan has grown to 10, all set to benefit from this initiative.
