Habib Bank AG Zurich Pakistan

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MIGA has provided a guarantee to Habib Bank AG Zurich for its equity investment in its Pakistan branches. The guarantee is for $2.7 million and provides coverage against the risks of transfer restriction and expropriation of funds. Habib Bank AG Zurich is already present in Pakistan, with seven branches in locations around the country, and offers general banking products, financial advisory services, and capital market transactions. This investment will allow Habib Bank AG Zurich to expand and diversify the services already offered, and to broaden its coverage by opening two new branches. MIGA has provided similar guarantees to Habib Bank AG Zurich twice in the past. The project is expected to produce significant developmental benefits. It will expand the availability of financing to SMEs, and lower the costs of financing by increasing competition in the financial services industry. It will also broaden the range and quality of banking services, by introducing new technologies, such as ATM machines and electronic banking. The project will require hiring approximately 25 new staff, for whom extensive training programs will be provided. An estimated $0.7 million is expected to accrue to the government in annual tax revenues.

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