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Consumer financing driver of economic growth

Consumer financing driver of economic growth

Interview with Syed Iftikhar ul Haq — Group Head of Consumer Finance at Meezan Bank

PAGE: Tell me something about yourself, please:

Syed Iftikhar ul Haq: As the Group Head of Consumer Finance at Meezan Bank, I lead various business units, including Cards, Alliances, Acquiring, Autos, House Finance, Solar Energy, Labbaik, and Consumer Ease.

I bring diversified and extensive experience in consumer banking from various multinational and Pakistani banks, such as Citi Bank, UBL, DIB, and Faysal Bank, where I held multiple executive positions. My passion lies in promoting financial inclusion and developing ethical and viable financing solutions within the framework of Islamic banking.

PAGE: What is your take on consumer financing these days?

Syed Iftikhar ul Haq: Consumer financing plays a critical role in driving economic growth and empowering individuals. However, transparency and responsible lending practices are paramount. The rise of Islamic banking principles, with their emphasis on profit-sharing and risk-sharing, offers a compelling alternative to traditional models. Despite challenges in the current economic climate, Meezan Bank remains committed to serving the nation through the best Islamic practices in consumer financing.

PAGE: How would you comment on auto financing over the period of preceding one year?

Syed Iftikhar ul Haq: The auto financing sector has experienced fluctuations over the past years. However, Meezan Bank’s focus on Shariah-compliant car financing through Car Ijarah has provided reasonable stability during this period. This reflects a growing interest in ethical and transparent financing options within the auto market.

PAGE: What must be done to encourage consumer financing in solar energy?

Syed Iftikhar ul Haq: Meezan Bank is committed to playing a leading role in the green energy transformation. We have already achieved a significant milestone by disbursing over 500 solar units with a total installed capacity exceeding 5700 kilowatts under our Consumer Finance umbrella. To further encourage consumer financing for solar energy, several factors are key:

Shariah-compliant Green Financing Products: Developing more financing options aligned with Islamic principles will attract a wider customer base.

Government incentives: Tax breaks or subsidies for solar installations can make them more financially attractive for consumers.

Collaboration with providers: Partnerships between banks and solar panel providers can streamline the financing process.

PAGE: Real estate sector seems to be in crisis in the wake of exorbitant discount rate. What is your standpoint?

Syed Iftikhar ul Haq: The rising discount rate undoubtedly presents challenges for the real estate sector. However, Islamic banking offers financing solutions based on profit-sharing, which can provide some stability for both buyers and investors. Additionally, focusing on affordable housing projects alongside government initiatives can also help alleviate the burden on potential home buyers.

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