JEDDAH, 12 March 2007 — Islamic Corporation for the Development of the Private Sector (ICD), with headquarters in Jeddah, has made investments totaling $50 million in Pakistan.
“ICD will continue to look for additional projects in Pakistan, especially in vital sectors like manufacturing industry, telecommunications and technology and cotton or textile industry where Pakistan’s comparative advantage can be enhanced,” Dr. Ali A. Soliman, CEO and general manager, ICD, said during a meeting with Pakistan Prime Minister Shaukat Aziz in Islamabad last week.
The prime minister welcomed the current thrust of Islamic Development Bank, the parent body of ICD, in providing equity and financing to commercially viable projects and companies for enterprise restructuring and modernization.
“ICD in particular has a vital role to play when it comes to the development of Islamic capital markets,” Aziz said. “It is interesting to note that ICD has been contributing toward promoting interest in Islamic securities.”
Aziz also emphasized the need for Shariah-compliant products and a good regulatory framework to facilitate transactions under Islamic banking system in which ICD could provide valuable consultation and technical assistance. The meeting was attended by Rafique Dawood, chairman of First Dawood Islamic Bank Ltd. (FDIBL) and a group of investors.
Aziz emphasized the importance of the private sector’s role in the development process. “The role of the private sector is growing in Pakistan,” he said and complimented ICD for enhancing the contribution of the private sector in OIC countries. “The private sector should be the dominant player in the economic development of any country. The financial sector should adjust to the changing trends to meet the challenges posed by globalization,” the premier added.
The board of directors of ICD has approved three projects in Pakistan in areas related to fertilizers and cement production as well as housing.
In addition, ICD holds 22.2 percent of the newly established FDIBL, which will start operations shortly as an Islamic bank. It plans to open five branches in major cities of Pakistan this year.