KARACHI - SBP and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IDB) Group, have signed an MoU to cooperate in promoting trade and investment in Pakistan.

The MoU, which was signed by State Bank of Pakistan Governor Yaseen Anwar and Dr Abdul Rehman Taha, CEO ICIEC at SBP here on Monday,

Under the MoU, both parties shall cooperate for the purpose of promoting and supporting the flow of trade and investment to and from Pakistan, in accordance with the prevalent laws and regulations. SBP shall endeavour to provide/ share banking industry wide (not of individual bank) information and its reports, papers etc on foreign investment environment in Pakistan with ICIEC as and when desired by it (ICIEC).

The ICIEC operations in Pakistan, among others, would include provision of Shariah compliant insurance coverage to Letters of Credit (LC) issuing banks in Pakistan, which will help them in getting their LCs confirmed at competitive rates.

Earlier, Dr Abdul Rehman Taha called on the State Bank GovernorYaseen Anwar and discussed his plans to expand ICIEC operations in Pakistan. Anwar welcomed him and appreciated the interests of ICIEC in Pakistan and assured State Bank’s complete support to ICIEC for the promotion of trade and investment in the country.

Dr Taha said the signing of MoU comes within the framework of the role of ICIEC in supporting financial institutions in its member countries to enable them to provide export finance to their customers.

Headquartered in Jeddah, Saudi Arabia, ICIEC is the only multilateral Shariah Compliant ECA in the world providing credit and political risk insurance (Takaful) services.ICIEC’s risk mitigating instruments help its clients (exporters, banks and investors) in its member countries in expanding their business volumes in a risk and cost effective manner.