MIGA has issued $9.6 million in guarantee coverage to Habib Bank AG Zurich of Switzerland for its capital investment in Habib Bank AG Zurich, Pakistan Branches. The guarantee is for up to 15 years and covers against the risks of transfer restriction and expropriation. This is MIGA’s fifth contract in support of Habib Bank AG Zurich’s operations in Pakistan.
The investment aims to help Habib continue its expansion in Pakistan, bringing the bank’s number of branches to 25. Habib’s presence has a strong demonstration effect on the country’s banking sector, with its emphasis on good corporate governance and its stable capital base, high liquidity, and close cooperation with regulatory bodies. Other expected development impacts include increased technological innovation and knowledge transfer.
MIGA’s support to Habib supports the World Bank Group strategy for Pakistan’s financial sector, which aims to increase competition and expand access to financial services.
