Meezan Bank has collaborated with the National Clearing Company of Pakistan Limited (NCCPL) to develop new Shariah-compliant products for the country’s capital market.
Through this collaboration, Meezan Bank will extend its support in introducing the Murabaha Share Financing System (MSF) — a new Shariah-compliant product implemented by the NCCPL to help extend Shariah-compliant stock financing facilities to stockbrokers and their customers.
The MoU was signed by the Deputy CEO of Meezan Bank, Ariful Islam, and the CEO of the NCCPL, Muhammad Lukman, at a ceremony held at the Meezan Bank Head Office, Karachi.
Also present were the GM Head of Operations, Mohammad Asif; the Manager Product Development from the NCCPL, Sajid Sikander; Group Head of Customer Support, Muhammad Raza; the Manager of Capital Markets, Ayub Baig; and the Manager of Product Development from Meezan Bank, Hasan Faraz.
Under this agreement, both the organizations will work to enhance the proportion of Islamic products in Pakistan’s capital markets and to develop new Shariah-compliant financial instruments.
Meezan Bank is also Pakistan’s first bank to be inducted in the MSF System as a Non-Broker Clearing Member to extend Shariah-compliant financing to the stockbrokers and their customers in Pakistan.
Commenting on this occasion, the Deputy CEO of Meezan Bank, Ariful Islam, said, “Islamic capital markets form an integral part of the country’s Islamic financial system and offer great potential for product innovation to suit the needs of the customers”.
He said, “Through this collaboration, Meezan Bank aims to overcome the challenges associated with new product development for this sector, while also encouraging growth in both the markets as well as economic investment”.
Additionally, the CEO of the NCCPL, Muhammad Lukman, stated “This collaboration will pave way for introducing new and innovative Shariah-compliant products in capital markets”.