KARACHI: Meezan Bank and Industrial and Commercial Bank of China (Ltd) Pakistan (ICBC Pakistan) has signed the Tahawwut Master Agreement (TMA) between,

This will allow Meezan Bank to execute Shariah-compliant hedging for CNY denominated transactions on a Wa’ad (promise) based structure.

In a virtual ceremony, the agreement was signed by Irfan Siddiqui Founding President & CEO Meezan Bank and Chen Yuncheng CEO & General Manager ICBC Pakistan in presence of the senior management of both the organisations.

Commenting on this occasion, Irfan Siddiqui said that Meezan Bank is delighted to be given this opportunity to extend our role in the development of the Islamic financial market in Pakistan. “We strongly support and believe that the development of the financial system is critical for the future growth and success of any economy.”

He also congratulated ICBC Pakistan for completing ten (10) years of successful operations in Pakistan, and thanked them for their support in recognising Islamic financial markets as a viable alternative to existing conventional financial markets.

The TMA, which is governed under the International Islamic Financial Markets (IIFM) framework, is an Islamic alternative to the globally recognised International Swaps and Derivatives Association (ISDA) agreements, which allow banks to trade over-the-counter (OTC) financial products.

Copyright Business Recorder, 2021