Pakistan’s premier Islamic bank, Meezan Bank, and Pakistan Mortgage Refinance Company (PMRC), a Mortgage Liquidity Facility established by the State Bank of Pakistan, have signed a Master Musharakah agreement to support and promote affordable housing finance in the country. Under the terms of this agreement, PMRC will offer Meezan Bank with five years of fixed-rate concessional funding, which will give much-needed support to the whole housing value chain. With the acquisition of PKR 5 billion in funds, Meezan Bank intends to ultimately expand access to Shariah-compliant, affordable housing finance in Pakistan by offering more competitive interest rates.
Meezan Bank’s Founding President & CEO – Mr. Irfan Siddiqui, Deputy CEO – Mr. Ariful Islam, Group Head Consumer Finance – Syed Iftikhar ul Haq, & Head of Housing Finance – Mr. Masroor Mohsin attended the signing ceremony at Meezan House, Karachi. PMRC was represented by their Managing Director and Chief Executive Officer, Mr. Mudassir H. Khan, their Resident Shariah Board Member, Dr. Mufti Muhammad Yunas Ali, their Head of Business, Mr. Muhammad Shahzad Khan, and their Head of Islamic Business, Mr. Hasan Junaid Nasir. Mr. Irfan Siddiqui, founding president and chief executive officer of Meezan Bank, praised PMRC’s initiative to bring innovation to the Islamic Finance market by floating funds for the benefit of end customers. This programme will sustain Islamic home financing in the country despite the increase in KIBOR by making Shariah-compliant house finance more accessible for customers. We are excited to join up with PMRC as they continue to become a key participant in the growth of long-term housing finance in the United States, while also providing the security of guaranteed profit rates.
Mudassir H. Khan, Managing Director and Chief Executive Officer of PMRC, stated at the event, “It is undoubtedly a milestone for both institutions as we realise the significance of mutual cooperation between financial institutions for the growth and support of the country’s housing sector. We are happy to assist the largest Islamic bank in the country and feel that such partnerships will play a crucial role in the promotion and development of affordable housing in the country.”