Faysal Bank Limited (FBL) has entered a new strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group, under IFC’s Global Trade Finance Program (GTFP). This partnership aims to establish a trade finance guarantee facility for FBL, enabling the bank to significantly enhance its trade finance offerings and better meet the needs of its clients.
The partnership with IFC, through its GTFP, will help FBL expand its capacity to provide trade-related services to local businesses, improving their ability to engage in international trade with greater ease and security. This initiative is expected to play a critical role in promoting growth within Pakistan’s trade sector by leveraging IFC’s global network and expertise. By offering additional trade finance support, the facility will ensure that Pakistani businesses can participate in global trade with more confidence, potentially boosting economic activity.
The collaboration was officially marked with a signing ceremony held on September 25, 2024. During the event, an Engagement Letter was signed between Faysal Bank and IFC. The ceremony was attended by Mr. Khawaja Aftab Ahmed, Regional Director for the Middle East, Pakistan & Afghanistan at IFC, along with his team, demonstrating the significance of the partnership.
Yousaf Hussain, President and CEO of Faysal Bank Limited, praised IFC’s long-standing commitment to Pakistan and emphasized the importance of the new trade finance initiative. “We are pleased to partner with IFC, under their Global Trade Finance Programme, further enhancing our capacity on trade financing. The facility will act as a stepping stone into a multifaceted strategic engagement with IFC,” said Hussain.
The partnership comes as part of IFC’s broader Global Trade Finance Program, which has been active in Pakistan since 2005. Over the years, Pakistan has emerged as one of the key markets for the program, with a total of $6.6 billion in GTFP commitments since its inception, including $1.4 billion in the fiscal year 2023 alone. These commitments have played a vital role in supporting Pakistan’s trade and economic development by helping banks like FBL offer enhanced trade finance solutions.
The establishment of this trade finance guarantee facility will further solidify FBL’s standing as a leading provider of Shariah-compliant trade finance solutions in Pakistan. The bank’s commitment to innovation and international trade capabilities will also benefit from the partnership, as it opens up more avenues for Pakistani businesses to connect with global markets.
FBL’s partnership with IFC reflects the bank’s broader strategy to expand its international trade finance portfolio and provide a more comprehensive range of services to its customers. As part of this strategy, the new facility will serve as a critical tool in FBL’s efforts to offer secure, reliable trade finance options that adhere to Islamic principles, ensuring that the bank remains at the forefront of Pakistan’s evolving banking landscape.
The collaboration between Faysal Bank and IFC underscores a shared vision of promoting economic growth and development in Pakistan by enabling businesses to thrive in the global marketplace. As the demand for trade finance continues to grow, FBL’s enhanced capacity to support local businesses will contribute to the country’s overall economic progress, creating more opportunities for Pakistani enterprises to engage in international trade.
By working closely with IFC, FBL is positioning itself as a key player in the global trade finance sector, while reinforcing its commitment to providing innovative, Shariah-compliant banking solutions. This partnership is expected to not only benefit the bank’s clients but also have a positive impact on Pakistan’s trade sector as a whole, driving future growth and economic prosperity.
As the partnership develops, Faysal Bank and IFC will continue to explore further avenues for collaboration, focusing on creating sustainable and long-term solutions that support the needs of Pakistan’s growing trade and business sectors.