Ahmed & Qazi is pleased to announce that, acting for the National Credit Guarantee Company Limited (NCGCL), we have successfully developed the country’s first ever shariah compliant credit guarantee that has been approved by the Securities and Exchange Commission of Pakistan.
Under this first-of-a-kind risk-sharing product, participating institutions contribute to a pooled fund on a donation (Tabarru) basis, managed by NCGCL as an agent (Wakeel) under a Wakalah arrangement. Losses from eligible defaults are covered from this pool, ensuring risk sharing without guaranteed returns.
The SECP’s Shariah Advisory Committee reviewed and approved the structure, noting that it aligns with key Shariah principles. The initiative is expected to increase access to financing for MSMEs, agriculture and other priority sectors.
A&Q team was led by Altan Ahmed (Managing Associate), who was assisted by a team of associates at the firm.
