Meezan Bank and ICBC Pakistan Sign Tahawwut Master Agreement to Enable Shariah-Compliant Hedging for CNY-Denominated Transactions

Pakistan-based Meezan Bank and the Industrial and Commercial Bank of China (Ltd) Pakistan (ICBC Pakistan), have recently signed a Tahawwut Master Agreement (TMA) in a virtual ceremony, according to a statement dated 23rd of November 2021. The TMA was signed by Irfan Siddiqui, Founding President and Chief Executive Officer (CEO) of Meezan Bank and Chen Yuncheng, CEO and General Manager of ICBC Pakistan, among senior management of both organisations.

Why it Matters?

The TMA will enable Meezan Bank to carry out Shariah-compliant hedging for CNY-denominated transactions on a Wa’ad (promise) based structure. According to Siddiqui, the TMA will extend Meezan Bank’s role in developing the Islamic financial market in Pakistan, adding that the development of the...