Engro Fertilizers Ltd and MCB Bank Ltd have partnered to accelerate the digitisation of financial products by developing Pakistan’s first-ever solution to electronically manage bank guarantees.
“With businesses adopting virtual operations and enforcing minimal physical interaction in the wake of Covid-19, Engro Fertilizers Ltd engaged MCB Bank Ltd to develop an electronic bank guarantee management solution that will promote digitalization and enhanced corporate service delivery,” said a statement issued on Wednesday.
The bank, in consultation with Mohsin Tayebaly & Co, managed legal and regulatory concerns to provide a SWIFT-based mechanism to Engro Fertilizers Ltd at nominal cost and minimal impact to business operations. Additionally, the designed process will also facilitate to mitigate the risk of counterfeit bank guarantees, identified as a recurring cause of concern in Pakistan’s banking Industry.
This system, currently operational only for Engro Fertilizers, is expected to be rolled out for all other clients of MCB Bank. Given the existing credit sales model offered by most corporations, the product would assist the wider industry in facilitating their customers and stakeholders in the near future.
In a joint statement, Engro Fertilizers CEO Nadir S Qureshi and MCB Bank President/CEO Imran Maqbool shared pride in the abilities of the combined team responsible for identifying and developing this much needed financial solution. They were confident that this solution would transform the way bank guarantees could now be managed in the country.