Meezan Bank, NCCPL join hands for new Shariah-compliant products

KARACHI: Meezan Bank has collaborated with National Clearing Company of Pakistan Limited (NCCPL) for developing new Shariah-compliant products for the country’s capital market.

Through this collaboration, Meezan Bank will extend its support in introducing Murabaha Share Financing System (‘MSF’), a new Shariah-compliant product, implemented by NCCPL, that will help in extending Shariah-compliant stock financing facilities to stock brokers and their customers. The MoU was signed by Ariful Islam Deputy CEO Meezan Bank and Muhammad Lukman, CEO NCCPL.

Under this agreement, both organisations will work to enhance the proportion of Islamic products in Pakistan’s capital markets and develop new Shariah-compliant financial instruments. Meezan Bank is also the first bank in the country to be inducted in MSF System, a Shariah-compliant product of NCCPL, as a Non-Broker Clearing Member for the purpose of extending Shariah-compliant financing to the stock brokers and their customers in Pakistan.

Commenting on this occasion, Ariful Islam Deputy CEO of Meezan Bank, said that 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. “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,” he added.

Muhammad Lukman, CEO NCCPL said that this collaboration will pave way for introducing new and innovative Shariah-compliant products in capital markets.

Copyright Business Recorder, 2021