State Bank, ICIEC sign MoU to promote trade, investment in Pakistan

Karachi: State Bank of Pakistan SBP & Islamic Corporation for Insurance of Investment & Export Credit ICIEC, a member of Islamic Development Bank IDB Group, Monday signed Memorandum of Understanding MoU to cooperate in promoting trade and investment in Pakistan.

MoU, signed by SBP Governor Yaseen Anwar & Dr Abdul Rehman Taha, Chief Executive Officer, ICIEC at ceremony at SBP, Karachi, is aimed at establishing a basis for exchange of information between two entities on banking industry’s condition and operating performance and ICIEC exposures on banks operating in the country.

Both parties shall cooperate for promoting, supporting flow of trade, investment to and from Pakistan, in accordance with prevalent laws, regulations. SBP shall endeavour to provide/ share banking industry wide not of individual bank information and its reports, papers on foreign investment environment in Pakistan with ICIEC as and when desired by it ICIEC.

ICIEC operations in Pakistan, among others, would include provision of Shariah compliant insurance coverage to Letters of Credit LC issuing banks in Pakistan, which will help them in getting their LCs confirmed at competitive rates.

Earlier, Dr Taha called on Anwar and discussed plans to expand ICIEC operations in Pakistan. Anwar appreciated ICIEC interests in Pakistan and assured SBP’s complete support to ICIEC for promotion of trade and investment in the country. Dr Taha said MoU signing comes within framework of ICIEC role in supporting financial institutions in its member countries to enable them provide export finance to their customers. “I am confident that signing MoU with SBP will greatly enhance ICIEC’s ability to support Pakistan’s international trade, particularly with OIC member countries,” he added.

Headquartered in Jeddah, Saudi Arabia, ICIEC is only multilateral Shariah Compliant ECA in the world providing credit and political risk insurance Takaful services. ICIEC’s risk mitigating instruments help its clients exporters, banks, investors in its member countries in expanding their business volumes in a risk and cost effective manner. Since inception in 1995, ICIEC has provided insurance commitments in excess of USD 11 billion.

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