ISLAMABAD, Mar 24 (APP):Meezan Bank – Pakistan’s first and largest Islamic bank has successfully instituted an Islamic alternate to Inland Bill Discounting Facility (IBDF) for Huawei Technologies Pakistan (Pvt.) Limited – a first-of-its-kind transaction in the Islamic banking industry, developed as a Shariah-compliant alternate to a local bill discounting facility.
The first drawdown under the facility was made against a deferred payment inland Letter of Credit (LC) opened by Pak Telecom Mobile Limited (Ufone) in favor of Huawei, said a news release.
The transaction has been developed by the Bank under the supervision and guidance of Dr. Muhammad Imran Ashraf Usmani – Vice-Chairman Shariah Board, Meezan Bank, after a series of deliberations and persistent efforts.
On this occasion, Abdullah Ahmed – Group Head, Corporate & Institutional Banking, Meezan Bank stated, “Meezan Bank is pleased to offer yet another milestone solution for the Islamic banking industry i.e., a Shariah-compliant alternative to discounting of long tenor inland bills with the provision of variable profit rates. We are hopeful that this solution will serve as a precedent for unique transactions pertaining to trade within the telecom industry.”
Ahmed Ali Siddiqui – Group Head, Shariah Compliance, Meezan Bank, stated, “This endeavor of Meezan Bank displays its capability to develop out-of-the-box, innovative and Shariah-compliant solutions and reinforces its position as the leading Islamic bank of the country.
We hope this solution will open a new chapter in facilitating trade among businesses and industries in a Shariah-compliant way and bring more businesses and trade into the fold of Islamic banking.”
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