November 21st, 2022
Meezan Bank, Pakistan’s leading Islamic bank and Pakistan Mortgage Refinance Company (PMRC), a Mortgage Liquidity Facility set up by the State Bank of Pakistan, have recently inked a Master Musharakah agreement to support and promote affordable housing finance in the country. Under this agreement, PMRC will provide concessional funds to Meezan Bank on Musharakah, which will provide much-needed support across the housing value chain. With the acquisition of funds worth PKR five billion, Meezan Bank aims to ultimately improve access to affordable, Shariah-compliant housing finance in Pakistan through better and more affordable rates.
The signing ceremony took place at Meezan House, Karachi and was attended by Meezan Bank’s Founding President & CEO – Mr. Irfan Siddiqui, Deputy CEO – Mr. Ariful Islam, Group Head Consumer Finance – Syed Iftikhar ul Haq & Head of Housing Finance – Mr. Masroor Mohsin. PMRC was represented by their Managing Director & CEO – Mr. Mudassir H. Khan, Resident Shariah Board Member – Dr. Mufti Muhammad Yunas Ali, Head of Business – Mr. Muhammad Shahzad Khan & Head Islamic Business – Mr. Hasan Junaid Nasir.
Mr. Irfan Siddiqui – Founding President & CEO, Meezan Bank appreciated the initiative taken by PMRC for bringing innovation in Islamic Finance market by floating funds for facilitation of end customers. “This initiative will support Islamic housing finance in the country despite rising KIBOR by making Shariah-compliant housing finance more affordable for the customers. We are pleased to be joining hands with PMRC as they continue to become an important player in the development of long-term housing finance in the country along with the comfort of affordable profit rates.”
Mudassir H. Khan – Managing Director & CEO , PMRC while speaking at the occasion said, “It is indeed a milestone for both the institutions as we recognize the importance of mutual coordination between financial institutions for the growth and support of housing sector in the country. We are proud to support the largest Islamic bank in the country and believe that such collaborations will play a key role for promotion and growth of affordable housing in the country.”
PMRC is set up as a Mortgage Liquidity Facility to address the long-term funding constraint in the banking sector, which is hindering the growth of the primary mortgage market. State Bank of Pakistan (SBP) recognizes PMRC as the fastest growing Development Financial Institution (DFI) and the largest bond issuer in the industry.
PMRC has emerged as a key player in providing funds to both conventional and Islamic Primary Mortgage Lenders (PMLs) and serves as a secure source of long-term funding at attractive rates along with assurance of sound lending habits amongst the PMLs. PMRC business structure not only help improves the affordability and accessibility of mortgages but also increases the number of qualifying borrowers thus empowering financial inclusion. PMRC envisions further expansion of the primary mortgage market, which will consequently lead to the ultimate goal – a more widespread home ownership.
With the highest credit rating, PMRC is rated AAA/A1+ with a stable outlook by VIS Credit Rating Agency. PMRC’s risk profile reflects a restrained risk appetite, a strong funding base, a secure level of liquidity, sound business practices and consistently stable performance.
For more information: www.pmrc.com.pk.