KARACHI: Meezan Bank and National Clearing Company of Pakistan Limited (NCCPL) have agreed to develop 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, will help in extending Shariah-compliant stock financing facilities to stock brokers and their customers.
The Memorandum of Understanding (MoU) was signed by Ariful Islam, Deputy CEO – Meezan Bank and Muhammad Lukman, CEO – NCCPL at a ceremony held at Meezan Bank Head Office, Karachi. Also present at the occasion were Mohammad Asif, GM – Head of Operations and Sajid Sikander – Manager Product Development from NCCPL; and Muhammad Raza – Group Head Customer Support, Ayub Baig – Manager Capital Markets and Hasan Faraz – Manager Product Development from Meezan Bank.
Under this agreement, both organizations 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: “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.”
“This collaboration will pave way for introducing new and innovative Shariah-compliant products in capital markets,” said Mr. Muhammad Lukman, CEO – NCCPL on the occasion.