Feb 13, 2018 – Karachi: Pakistan Mercantile Exchange Limited (PMEX), country’s only multi-commodity futures exchange facilitated the country’s third electronic Murabaha transaction and the first transaction for a Modaraba between Meezan Bank Limited and First Al-Noor Modaraba.
State Bank of Pakistan of Pakistan (SBP) had earlier allowed banks to conduct transaction on PMEX Sharia Compliant Trading Platform (SCTP) in a limited capacity for the pilot period of three months.
The conclusion of various transactions in quick succession has written a new chapter in the history of Islamic banking. All market participants under the able guidance of State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) are striving hard to bring Islamic banking at par with the conventional banking in the country. As these transactions become a norm, Islamic financial institutions will be able to manage their liquidity in a convenient, transparent and Shariah-compliant manner. This will also pave the way for the Government of Pakistan in borrowing money in a Shariah compliant manner.
Commenting on the occasion, Managing Director of PMEX, Mr. Ejaz Ali Shah, said, “ I would like to congratulate First Al Noor Modaraba for conducting their first transaction at the PMEX platform with Meezan Bank. The joint efforts of apex regulators, Sharia advisors, Market Participants and financial institutions and the Exchange has successfully resulted in the formation of a new ecosystem which will pave the way for the development of Islamic Money Market.”
Mr. Jalaluddin Ahmed, CEO of First Al-Noor Modaraba (FAM) said, “We are pleased to announce that our Modaraba has participated in the electronic Murabaha transaction through Meezan Bank Limited using the Shariah Compliant Trading Platform (SCTP) at PMEX. Moreover, FAM is extremely thankful to Meezan Bank for providing the necessary expertise in executing the said transaction and are also grateful to PMEX for providing a smooth structure”.
Mr. Basheer A. Chowdry, Chairman, NBFI & Modaraba Association of Pakistan said, “I congratulate First Al-Noor Modaraba for participation in the electronic Murabaha Transaction. This would open a new era to the modaraba sector to diversify their activities in the commodity market.”