KARACHI: In a bid to promote Islamic home finance throughout the country, Meezan Bank signed an MoU on Monday.
The details show that a Master Musharakah agreement was recently signed by the Bank and Pakistan Mortgage Refinance Company (PMRC) (a Mortgage Liquidity Facility established by the SBP) to support and promote affordable housing finance in the country.
According to the agreement, PMRC would give Meezan Bank a five-year fixed-rate concessional funding, which will support the entire housing value chain.
Furthermore, Meezan Bank also assured increased access to cheap, Shariah-compliant housing finance in Pakistan at better and more competitive rates by acquiring funds worth Rs. 5 billion.
Besides, Irfan Siddiqui, the founding president and CEO of Meezan Bank, Deputy CEO, Ariful Islam, Group Head, Syed Iftikhar ul Haq, and Masroor Mohsin, the head of housing finance, attended the signing event at Meezan House in Karachi.
The CEO of Meezan Bank stated that by lowering the cost of Shariah-compliant house finance for customers, this program would support Islamic housing finance despite rising KIBOR.
“We are happy to work with PMRC as they continue to play a significant role in the growth of long-term housing finance,” he added.
Additionally, the CEO of PMRC argued that it was undoubtedly a turning point for both institutions as “we now understand how crucial financial institutions’ mutual coordination is to the development and support of the housing sector of Pakistan.”
