Dubai Islamic Bank Pakistan Limited Joins IFC’s Global Trade Finance Program
Dubai Islamic Bank Pakistan Limited (DIBPL) has recently made significant strides in the realm of international trade by signing an Issuing Bank Agreement (IBA) with the International Finance Corporation (IFC). This agreement, initiated on May 7, 2024, marks a pivotal moment for trade finance in Pakistan and underscores DIBPL’s commitment to fostering global economic connectivity.
Strengthening Trade Finance in Pakistan
Under the terms of the agreement, IFC will provide a crucial guarantee for DIBPL’s trade finance transactions, particularly those with tenors of up to one year. This guarantee not only facilitates smoother transactions but also instills confidence in international trade partners, thereby enhancing DIBPL’s strategic vision for expanding its global trade operations.
Simplifying Trade Processes
Mr. Junaid Ahmed, CEO of DIPBL, expressed optimism about the agreement’s impact on trade finance processes in Pakistan. He emphasized that streamlining and easing these processes are vital for the country’s trade ecosystem. By partnering with IFC, DIBPL aims to create a seamless environment for businesses engaged in international trade, ultimately contributing to economic growth and stability.
IFC’s Global Trade Finance Program (GTFP)
The agreement falls under IFC’s esteemed Global Trade Finance Program (GTFP), known for extending the capacity of banks to provide trade financing across diverse markets. Through risk mitigation strategies, GTFP enables banks to navigate challenging market conditions and support trade activities that drive economic progress.
Supporting Local Enterprises and Supply Chains
Momina Aijazuddin, Regional Head for the Financial Institutions Group at IFC, highlighted the pivotal role of trade in fostering economic opportunities for local enterprises. By supporting DIBPL’s efforts to boost international trade, IFC aims to strengthen supply chains, enhance productivity, and create employment opportunities within Pakistan.
Expansion of IFC’s Program in Pakistan
Pakistan has emerged as a key market for IFC’s GTFP, with substantial commitments totaling US$6.6 billion since inception and US$1.4 billion for FY23 alone. With DIPBL joining as a partner issuing bank, IFC’s program now includes 10 such banks in Pakistan, poised to benefit significantly from the program’s offerings.