Meezan Bank, based in Pakistan, is eyeing overseas expansion starting with a potential entrance into Indonesia to capitalize on the growing Islamic banking market in that country while limiting the growth domestically due to economic difficulties arising from dwindling foreign exchange reserves, high inflation and currency devaluation. Pakistan’s Islamic finance industry also faces a potential reputational risk should a significant number of the growing ranks of unregistered investment schemes offering high rates of return swells turn out to be fraudulent. In spite of a difficult economic backdrop, Meezan continues to expand its Islamic financing at a healthy rate as deposits flow in and overseas expansion could be a foresighted plan to diversify the sources of the bank’s future income.
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