KARACHI: Bank Alfalah Islamic Banking has recently signed Memorandum of Understanding (MoU) for Strategic Partnership with Centre for Islamic Finance (CIF) at Lahore University of Management Sciences (LUMS) to jointly setup a research initiative to promote Pakistan’s first ever asset side Musharakah based financing product.
According to a statement on Tuesday, the agreement between one of the leading Islamic Banking Institution and Pakistan’s top business school will encourage innovation through developing new products and would help the industry to align itself with the regulator’s preference towards participatory modes of Islamic financing.
Dr. Muhammad Imran, Group Head Bank Alfalah Islamic, at the occasion of the signing ceremony said that this partnership will go a long way in realizing the Bank’s vision to launch products and initiatives based on the Islamic principles of Musharakah and Mudarabah.
He said, “Innovation is the cornerstone of banking at Bank Alfalah Islamic and this initiative with LUMS would further strengthen Bank Alfalah Islamic’s position as a leader in innovative Islamic banking”.
Dr. Saad Azmat, Chair Centre for Islamic at LUMS said: “I am delighted that we have signed this MoU and look forward to working with Bank Alfalah Islamic in promoting the use of Musharakah and Mudarabah based financing by Islamic Banks.
“This collaboration would help us undertake research on risk sharing, which is one of the core principles of Islamic Finance. This MoU signed will help us to deepen our understanding of Islamic finance, along with developing institutions and instruments to support sustainable and inclusive growth of the Islamic Finance industry in Pakistan.”
Syed Ali Sultan, Group Head, Bank Alfalah Treasury and Capital Markets provided an insight on the overall economic situation and the importance of Islamic Financial transaction in the global economic landscape.
Dr. Alnoor Bhimani, Honorary Dean, LUMS welcomed the enthusiasm of Bank Alfalah Islamic to help drive a better understanding of Islamic banking.