The State Bank of Pakistan (SBP) and the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) – a member of the Islamic Development Bank (IDB) Group – have signed a memorandum of understanding (MoU) to cooperate in promoting trade and investment in Pakistan.
The MoU, which was signed by SBP Governor Yaseen Anwar and ICIEC Chief Executive Officer Dr Abdul Rehman Taha at the SBP here on Monday, is aimed at establishing a basis for the exchange of information between the two entities on banking industry’s condition and operating performance and ICIEC exposure on banks operating in the country.
Both the parties will cooperate for the purpose of promoting and supporting the flow of trade and investment to and from Pakistan, says a press release.
ICIEC operations will include provision of Shariah-compliant insurance coverage to letters of credit issuing banks in Pakistan, which will help them in getting their LCs confirmed at competitive rates.
Earlier, Abdul Rehman Taha called on the SBP governor and discussed plans to expand ICIEC operations in Pakistan.
Taha said the signing of MoU came within the framework of the role of ICIEC in supporting financial institutions in member countries to enable them to provide export finance to their customers.
Published in The Express Tribune, January 31st, 2012