Karachi, September 15, 2023 – Meezan Bank Limited, in a significant strategic move, has announced its intention to establish an Exchange Company.
This development was communicated to the Pakistan Stock Exchange (PSX) through an official notice.
Analysts at Arif Habib Limited have noted that this decision by Meezan Bank is in response to recent structural reforms initiated by the State Bank of Pakistan (SBP). These reforms have reshaped the landscape of financial services in the country.
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The decision to establish an Exchange Company was approved by the Board of Directors of Meezan Bank and is contingent upon regulatory approval.
The primary objective of Meezan Bank’s move to create a wholly-owned subsidiary Exchange Company, with an initial capital of PKR 1 billion, aligns with the regulatory reforms introduced by the SBP in the Exchange Companies sector. These reforms are intended to encourage banks, particularly those heavily involved in foreign exchange transactions, to establish specialized Exchange Companies.
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Furthermore, these regulatory changes aim to improve the efficiency and resilience of the foreign currency exchange sector in Pakistan. By doing so, Meezan Bank aims to contribute to making foreign exchange services more seamless and accessible to the public.
This strategic decision reflects Meezan Bank’s commitment to supporting and adapting to the evolving financial landscape in Pakistan. It also underscores the bank’s alignment with the broader objectives of the SBP’s reform initiatives, which seek to enhance the country’s financial services sector and strengthen its position in the global market.
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As the establishment of the Exchange Company progresses through regulatory channels, it is expected to further enhance the bank’s offerings and contribute to the ongoing development of Pakistan’s financial industry.
