main navigation menu miga logo
World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Subscribe to Our Monthly Newsletter
x

About Dropdown Description

World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Pakistan

Habib Metropolitan Bank Limited

$95.1 million
Banking
Project Brief
Not Active
twitteremail

On June 24, 2011 MIGA issued a guarantee to Habib Bank AG Zurich (HBZ) of Switzerland covering its investment in its subsidiary, Habib Metropolitan Bank (HMB) in Pakistan. The coverage is for 80 million Swiss Francs (CHF) for a period of up to 20 years against the risks of transfer restriction and expropriation. This is a new guarantee, which involves consolidation of existing coverage into one contract of guarantee, extended risk coverage, and an additional amount of coverage of CHF 14.6 million.[1]

This project involves the continued operation and expansion of HMB in Pakistan. MIGA’s ongoing support is considered critical to this investor, and this project will contribute to strengthening Pakistan’s banking sector, one of the top reform priorities of the government. HMB’s expansion and modernization continues to contribute to the strengthening of the local banking sector through the transfer of know-how, expertise and technology as its policies, directives and business practices are aligned with those of its parent company, HBZ, which is subject to the supervision by the Financial Markets Supervisory Authority (FINMA), the Swiss banking regulator.

HMB plays a major role in offering financial services to Pakistan’s population. It operates more than 135 branches in 20 cities throughout the country, including four full-service Islamic banking branches. Moreover, the bank’s network connectivity has been substantially upgraded, including a 17 percent increase in ATM rollout across the country and various internal control process enhancements. HMB’s growing branch network also facilitates deposit taking by HMB, thereby contributing to formal savings by the population. Investment in human capital has also continued, bringing the total number of staff to nearly 2,400.

MIGA’s support is aligned with the World Bank Group’s strategy in Pakistan’s financial sector, which aims at increasing competition and expanding access to financial services to different segments of the population. The sector still suffers from low banking penetration and limited access to finance, especially with respect to the provision of banking services to underserved segments, including small and medium enterprises, consumer and housing finance, microfinance, and rural finance. The project is also aligned with MIGA’s strategic priority of supporting investments into countries eligible for lending from the International Development Association.

 

[1] The guarantee was cancelled on June 22, 2021.

twitteremail