Meezan Bank provides 1st Shariah-compliant solution to IBD facility for Huawei

March 24, 2022: Meezan Bank- Pakistan’s first and largest Islamic bank has successfully instituted an Islamic alternate to Inland Bill Discounting Facility for Huawei Technologies Pakistan (Pvt.) Limited.

It is the first-of-its-kind transaction in the Islamic banking industry, developed as a Shariah-compliant alternate to local bill discounting facility, said Meezan release on Thursday.

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 favour of Huawei. 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.

Abdullah Ahmed, Group Head, Corporate and Institutional Banking, Meezan Bank said Meezan Bank was 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,” he remarked.

APP