Faysal Bank Partners with IFC for Trade Finance Guarantee

KARACHI: In a significant development for the banking sector in Pakistan, Faysal Bank Limited (FBL) has entered into a strategic partnership with the International Finance Corporation (IFC), which is a member of the World Bank Group. This collaboration is part of IFC’s Global Trade Finance Program (GTFP), designed to bolster trade finance capabilities across the globe.

The primary goal of this partnership is to explore the establishment of a trade finance guarantee facility for FBL. This facility is expected to enhance the bank's trade finance program, allowing it to better serve the increasing demands of its clients. By providing this guarantee, FBL will be able to expand its capacity to offer trade-related services to local businesses, thereby facilitating their engagement in international trade with improved ease and security.

One of the most exciting aspects of this partnership is the potential for growth it brings to Pakistan’s trade sector. By leveraging IFC’s extensive global network and expertise, FBL aims to not only enhance its own services but also contribute to the overall development of trade in the country.

The formal announcement of this partnership was made during a signing ceremony held on September 25, 2024. The event was attended by Khawaja Aftab Ahmed, the Regional Director for the Middle East, Pakistan & Afghanistan at IFC, along with his team. Yousaf Hussain, the President and CEO of Faysal Bank Limited, expressed his appreciation for IFC’s ongoing commitment to the Pakistani market. He stated, “Faysal Bank is pleased to partner with IFC under their Global Trade Finance Programme, further enhancing our capacity on trade financing.” He also mentioned that this facility would serve as a stepping stone into a multifaceted strategic engagement with IFC.

Since its inception in 2005, IFC’s GTFP has been instrumental in supporting trade finance in Pakistan. The country has emerged as one of the top markets for this program, with total GTFP commitments reaching $6.6 billion and $1.4 billion in the fiscal year 2023 alone. This collaboration not only highlights FBL’s commitment to expanding its international trade capabilities but also emphasizes its dedication to providing innovative, Shariah-compliant solutions that cater to the evolving needs of its clients.

The partnership between Faysal Bank and IFC marks a pivotal moment for trade finance in Pakistan. As local businesses seek to navigate the complexities of international trade, this initiative promises to provide them with the necessary support and resources. By enhancing trade finance capabilities, FBL is not just investing in its future but also contributing to the broader economic growth of Pakistan. This collaboration could very well be a game-changer for many businesses looking to expand their horizons.