The State Bank of Pakistan and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IDB) Group, on Monday signed a Memorandum of Understanding (MoU) to cooperate in promoting trade and investment in Pakistan.
The MoU was signed by Yaseen Anwar, Governor, State Bank of Pakistan and Dr Abdul Rehman Taha, Chief Executive Officer (CEO), ICIEC at a ceremony held at SBP on Monday. The MoU is aimed at establishing a basis for the exchange of information between the two entities on banking industry's condition and operating performance and ICIEC exposures on the banks operating in the country.
Under the MoU, both parties will cooperate for the purpose of promoting and supporting the flow of trade and investment to and from Pakistan, in accordance with the prevalent laws and regulations. The SBP shall endeavour to provide/share banking industry wide (not of individual bank) information and its reports, papers, etc, on foreign investment environment in Pakistan with ICIEC as and when desired by it (ICIEC). The ICIEC operations in Pakistan, inter alia, would include provision of Shariah-compliant insurance coverage to Letters of Credit (LC) issuing banks in Pakistan, which will help them get their LCs confirmed at competitive rates.
Earlier, Dr Abdul Rehman Taha called on the State Bank Governor Yaseen Anwar and discussed his plans to expand ICIEC operations in Pakistan. Anwar welcomed him and appreciated the interests of ICIEC in Pakistan and assured the State Bank's complete support to ICIEC for the promotion of trade and investment in the country.
Dr Taha said the signing of MoU comes within the framework of the role of ICIEC in supporting financial institutions in its member countries to enable them to provide export finance to their customers. "I am confident that signing the 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 the only multilateral Shariah Compliant ECA in the world providing credit and political risk insurance (Takaful) services.
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