KARACHI: The Meezan Bank has collaborated with the National Clearing Company of Pakistan Limited (NCCPL) for developing new Shariah-compliant products for the country’s capital market, a statement said on Thursday.

Through this collaboration, Meezan Bank will extend its support in introducing Murabaha Share Financing System, a new Shariah-compliant product, implemented by NCCPL that will help in extending Shariah-compliant stock financing facilities to the stock brokers and their customers, it added.

Ariful Islam, deputy chief executive officer of the Meezan Bank, and Muhammad Lukman, chief executive officer of NCCPL, signed the memorandum of understanding.

Under the agreement, the two organisations 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 the Murabaha Share Financing 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, Islam said: “[The] 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 [the] new product development for this sector, while also encouraging growth in both the markets, as well as economic investment.”

Lukman said: “This collaboration will pave [the] way for introducing new and innovative Shariah-compliant products in [the] capital markets.”

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