ADB, Dubai Islamic Bank Pakistan ink deal to promote trade finance
ISLAMABAD: The Asian Development Bank’s (ADB) Trade and Supply Chain Finance Program (TSCFP) has signed an agreement with the Dubai Islamic Bank Pakistan Limited (DIBPL) to support trade in Pakistan, a statement said.
The ADB said it will provide guarantees to help the Dubai Islamic Bank expand its trade finance business in Pakistan.
The Trade and Supply Chain Finance Program has been operating in the country since 2008. The addition of DIBPL increases the Trade and Supply Chain Finance Program’s Pakistan partner banks to 13 and makes Pakistan one of the programme’s most promising markets.
To-date, the programme has provided more than $17.3 billion in trade in Pakistan through 5,891 transactions. This support has predominantly been provided for steel, polypropylene, fertilisers, and machinery for garments and weaving.
In 2020, the Trade and Supply Chain Finance Program supported 650 transactions in Pakistan worth $1.2 billion, with 51 per cent co-financed by the commercial banks.
“This further demonstrates our commitment to supporting trade in Pakistan,” TSCFP relationship manager for Pakistan Nana Khurodze said.
“We are delighted to work with DIBPL to support its initiatives with [the] trading companies, including providing small and medium-sized enterprises with access to global trade,” he added.
“This agreement will further streamline and ease the process for trade finance, giving a boost to business activities in Pakistan. Our partnership with [the] ADB shows trust in Dubai Islamic Bank Pakistan as an entity. We aim to work towards increasing trade flows to the country,” Dubai Islamic Bank Pakistan CEO Junaid Ahmed said.
Backed by ADB’s AAA credit rating, the Trade and Supply Chain Finance Program provides loans and guarantees to more than 200 partner banks to support trade, creating import and export opportunities for enterprises across Asia and the Pacific.
DIBPL is the wholly-owned subsidiary of the Dubai Islamic Bank, the UAE. It has been operating in Pakistan since 2006 with a network of 235 branches located in around 70 cities.
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