Meezan, Pirani unveil Pakistan’s 1st Shariah-compliant bike financing facility

With a nationwide network of over 600 branches, Meezan will be the preferred financier for Pirani’s power and super power bikes

By HABHAJAN SINGH

Meezan Bank Ltd, Pakistan’s first and largest Islamic bank, has unveiled Pakistan’s first Shariah-compliant bike financing facility which promises customers easy and affordable monthly payments.

The bank has recently signed a memorandum of understanding (MoU) with auto manufacturer Pirani Group of Cos to offer all variants of power and super power bikes through Meezan Bike Ijarah, the bank said in a statement.

The Karachi-based Pirani Group manufactures two-wheeler and three-wheeler vehicles, auto parts, vans, minivans, trucks and tractors.

With the MoU, Meezan Bank — with a nationwide network of over 600 branches — will be a preferred financier for power and super power bikes, the statement added.

“In Pakistan, the demand for motorbikes is ever-growing and Meezan Bank’s collaboration with Pirani Group augurs well for both the companies, as well as the evolving market needs and industry,” said Meezan Bank consumer finance group head Arshad Majeed.

Pirani Group director Naveed Usman Pirani said there is a high demand for Pakistani branded bikes in the market.

He added that the new facility would allow consumers unable to make one-time lump sum payments to purchase new motorbikes via instalment payments.
In a separate development, the State Bank of Pakistan (SBP) had last month announced that it would allow Islamic banks to offer long-term financing for plants and machinery to help improve their market share in the banking sector.

The central bank said it allowed issued Islamic long-term financing facility (ILTFF) based on Mudarabah to provide a Shariah-compliant alternative of conventional financing facility to meet long-awaited demand of exporters, according to a local newspaper.

In a statement, the central bank said: “ILTFF will allow exporters an opportunity to avail long-term refinance facility of SBP for purchase of imported and locally manufactured new plant and machinery from the eligible Islamic banking institutions.

“The facility shall be available to the export-oriented projects if their annual export is at least equivalent to US$5 million (RM19.5 million), or 50% of their sales constitute exports, whichever is lower.”