A virtual ceremony was recently held to commemorate the signing of the Tahawwut Master Agreement (TMA) between Meezan Bank and Industrial and Commercial Bank of China (Ltd) Pakistan (ICBC Pakistan), which will allow Meezan Bank to execute Shariah-compliant hedging for CNY denominated transactions on a Wa’ad (promise) based structure.
The agreement was signed by Mr. Irfan Siddiqui, Founding President & CEO – Meezan Bank, and Mr. Chen Yuncheng, CEO & General Manager – ICBC Pakistan. Also present at the ceremony were the senior management of both the organizations.
Commenting on this occasion, Mr. Irfan Siddiqui said, “We are delighted to be given this opportunity to extend our role in the development of the Islamic financial market in Pakistan. We strongly support and believe that the development of the financial system is critical for the future growth and success of any economy. I would also like to take this opportunity to congratulate ICBC Pakistan for completing ten (10) years of successful operations in Pakistan, and thank them for their support in recognizing Islamic financial markets as a viable alternative to existing conventional financial markets.”
The TMA, which is governed under the International Islamic Financial Markets (IIFM) framework, is an Islamic alternative to the globally recognized International Swaps and Derivatives Association (ISDA) agreements, which allow banks to trade over-the-counter (OTC) financial products.