Could you provide a brief journey of how you arrived where you are today?
I have held senior management positions with financial institutions in Pakistan and internationally, including Pakistan Kuwait Investment Company, Kuwait Investment Authority, Abu Dhabi Investment Company, Abu Dhabi Investment Authority and Coopers & Lybrand, London. I then pioneered Meezan Bank as founding chief executive officer (CEO) since the bank’s inception in 1997. .
What does your role involve?
As CEO of the bank, my role involves creating an overall synergy to our vision and mission statements and to ensure that the Meezan Bank team attains the shared common goals and values in our cause for promoting riba-free banking.
What is your greatest achievement to date?
The bank has grown six times in a period of just four years, which speaks of the response of the people of Pakistan. People have great faith in Islamic banking. They want to make investments and deposits based on Shariah law and with Shariah compliant products, so that they can earn halal profit. Our customer base includes top businessmen, top local and multi-national corporations, and many clients from small and medium-sized enterprises.
We are also the first bank which has financed exporters under the State Bank of Pakistan’s Islamic Export Refinance Scheme on the basis of Islamic modes of finance.
It is also very encouraging to say that Meezan Bank has a very balanced portfolio, which is unique for a financing institution in Pakistan.
Which of your products/services deliver the best results?
Meezan Bank has made remarkable progress within a short span of four years. We have developed alternatives for the majority of conventional banking products. On the liability side we offer riba-free transaction accounts, such as our current account, rupee saving accounts, foreign currency accounts and karobari munafa account. Our riba-free term deposits are monthly Mudarabah certificates, dollar Mudarabah certificates, Meezan Aamdan certificates, Meezan Providence and the Certificate of Islamic Investment.
On the assets side the Murabahah product is the most actively used financing contract, which enables an Islamic bank to finance the acquisition of fixed capital assets and to meet the working capital needs of the customers. In addition, we offer a full range of trade finance transactions covering both imports and exports. In the area of consumer finance we are offering Car Ijarah, Pakistan’s first Islamic auto leasing facility, and Easy Home, the nation’s first Islamic mortgage. Alhamdolillah all these products conform to the tenants of Shariah.
What are the strengths of your business?
We have set clear goals for ourselves. Our core marketing strategy is to maintain a unique brand image of a dedicated, truly riba-free and professional Islamic bank.
What are the factors contributing to the success of your company?
Meezan Bank is recognized today as a truly dedicated Islamic bank in Pakistan and has the honor of having world renowned Shariah scholars and Islamic banking practitioners working at the bank.
What are the obstacles faced in running your business today?
There is certainly an awareness gap, but it is only a matter of time and education. We need to develop a positive mindset to teach and educate people. Meezan Bank is playing a key role in increasing awareness in this regard. Our marketing team regularly organizes seminars in collaboration with business and trade bodies and academic institutions, and I am happy to say that we are able to generate a very good response from such seminars. However, I believe that media, especially the print media, can play a big role in promoting awareness.
Where do you see the Islamic finance industry, maybe in the next five years?
Today’s Islamic banking sector represents around a 2.5% market share of the total banking industry in Pakistan. Our target is to have a 12.5% market share in the next five years.
Name one thing you would like to see change in the world of Islamic finance?
I see Micro Financing becoming a prime area of focus in uplifting the economic conditions of the poor.
Meezan Bank was incorporated in 1997, beginning its operations as an investment bank. In 2002, Meezan Bank was granted Pakistan’s first fully fledged commercial banking license dedicated to Islamic banking, by the State Bank of Pakistan. As an Islamic bank, Meezan strives to find commonalties with the conventional banking system, with absolutely no compromise on Shariah rulings.