ICIEC and The State Bank of Pakistan  (SBP) signed a Memorandum of Understanding (MOU) today to cooperate in promoting trade and investments in Pakistan.  Mr.Yaseen Anwar, the Governor SBP and Dr. Abdel Rahman EI-Tayeb Taha, the Chief Executive Officer of ICIEC signed the MOU. The MOU aims at establishing a basis for the exchange of  information between the two entities on banking industry’s condition and operating performance indicators and ICIEC’s exposures on the banks operating in the country. 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.

Since its inception in 1995, ICIEC has provided insurance commitments in excess of USD 11 billion. Over 17 years in business, ICIEC has carefully nurtured professional relationship with leading exporters, ECAs, reinsurers and banks. ICIEC is now  a name  which  is trusted by its partners worldwide. ICIEC’s shareholders include  40 countries from  the  Organization Islamic Cooperation (OIC). Its main shareholder, Islamic Development Bank (IDB) owns 67% of the capital and is rated AAA by the three global rating agencies (S&P, Moody’s & Fitch). ICIEC is rated by Moody’s as Aa3 with a stable outlook on a stand-alone basis.

ICIEC’s operations in Pakistan among others include provision of Shariah compliant insurance coverage  to LC issuing banks in Pakistan, which aims to help them in getting their LCs confirmed at competitive prices. Confirming banks benefit from  ICIEC’s services in terms of credit risk transfer and favorable risk weight treatment under the Basel II framework. ICIEC also provides export credit insurance in support of Pakistani exporters and provides political risk insurance to encourage the flow of foreign investments into Pakistan.

Before signing of the MOU, Dr. Taha called on the Governor and discussed  ICIEC’s plans to further expand its operations in Pakistan. The Governor welcomed and appreciated ICIEC’s interest in Pakistan and assured SBP’s full support and facilitation to ICIEC for promoting trade and investment in the country.

Dr. Taha said, “The signing of the 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”. “I am confident  that singing the MOU with SBP will greatly enhance ICIEC’s ability to support Pakistan’s international trade, particularly with OIC member countries” He added.