Industrial Development Bank of Pakistan () is located in Karachi,

Sindh Sindh (; ; ur, , ; historically romanized as Sind) is one of the four provinces of Pakistan. Located in the southeastern region of the country, Sindh is the third-largest province of Pakistan by land area and the second-largest province ...

, Pakistan. It is among the oldest financing institutions in Pakistan.

History

Industrial Development Bank of Pakistan (IDBP) is one of Pakistan's oldest development financing institutions and was created with the primary objective of extending term finance for investment in the manufacturing sector of the economy. Over the years, however, the Bank has become an institution fostering the growth of

Small and Medium Enterprises Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank ...

in the rural/less developed regions of the country. Industrial Development Bank of Pakistan is wholly owned by Pakistani Government entities with 57% of its shares held by the Federal Government, 36% by the State Bank of Pakistan and 7% by Provincial Governments and other public sector corporations. Its board of directors consists of representatives of the private sector appointed by the Ministry of Finance. The IDBP has suffered from significant losses due to loan defaults. By the mid-2000s, the IDBP had accumulated a loss of about Rs27 billion and was insolvent. The Pakistani government merged IBDP with the Profitable Investment Corporation of Pakistan in 2006 in part to improve IBDP's financial performance. The bank continued to struggle commercially and by end of 2009 the accumulated deficit had risen to Rs28 billion. The Pakistani government continues to explore ways to make IDBP economically viable.

Mission

The Bank provides Medium and Long Term Finance in local and Foreign Currencies for fixed asset investment in new industrial projects as well as for expansion, balancing, modernization or replacement of existing projects. It extends technical, financial and managerial advice to its clients in planning and execution of the industrial projects. It also facilitates transfer of technologies from developed countries to industrial enterprises in Pakistan. A unique feature of Industrial Development Bank of Pakistan is that besides Development Financing Institution, it is also a Scheduled Bank and authorized dealer of

Foreign Exchange The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspec ...

. Thus, IDBP extends all kinds of

Merchant A merchant is a person who trades in commodities produced by other people, especially one who trades with foreign countries. Historically, a merchant is anyone who is involved in business or trade. Merchants have operated for as long as indust ...

Investment Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...

and Commercial Banking services to its clients which include provision of short term advances, Trade Financing,

Lease Financing A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial ...

, guarantees and under-writing. Thus, Industrial Development Bank of Pakistan operates a full-fledged Bank in addition to its role as a Development Financing Institution. Industrial Development Bank of Pakistan has the unique distinction of financing the first ever projects for a diversified list of products. These include Ultra High Temperature (UHT) pack milk, three wheelers, radio/wireless receiving sets, Marble Processing,

Coal Mining Coal mining is the process of extracting coal from the ground. Coal is valued for its energy content and since the 1880s has been widely used to generate electricity. Steel and cement industries use coal as a fuel for extraction of iron from ...

, Granite, Acetic Yarn, PVC Deep Sea Fishing etc. The projects implemented through IDBP’s financing generated over 100,000 new jobs and have an export potential of about Rs.10.00 billion per annum. The value addition by the completed project is estimated at about Rs.15 billion per annum.

Functions

Development banking business * Provides guarantee, loans * Provides medium and long term finances Commercial banking business * Bills * Deposits * Foreign Exchange accounts * Guarantees * Letter of Credit *

Remittances A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their home country or homeland. Money sent home by migrants competes with ...

* Short term advances Merchant banking business * Bridge Financing *

Leasing A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial ...

* Underwriting of public issue of shares Collection of utility bills * Gas bills at branches in Karachi * Telephone bills at all branches Administers of the equity participation fund Equity investment/trading

Branch Network

The Head Office of Industrial Development Bank of Pakistan is situated at Karachi,

, Pakistan. The Bank currently operates with following 13 branches: In Capital Territory; Islamabad and

Rawalpindi Rawalpindi ( or ; Urdu, ) is a city in the Punjab province of Pakistan. It is the fourth largest city in Pakistan after Karachi, Lahore and Faisalabad, and third largest in Punjab after Lahore and Faisalabad. Rawalpindi is next to Pakistan's ...

Branch (Part of the Province of Punjab) In the Province of

; Main branch Karachi, Hyderabad and Larkana Branch In the Province of Punjab; Faisalabad, Lahore and Multan Branch In the Province of Khyber Pakhtunkhwa;

Abbottabad Abbottabad (; Urdu, Punjabi language(HINDKO dialect) آباد, translit=aibṭabād, ) is the capital city of Abbottabad District in the Hazara region of eastern Khyber Pakhtunkhwa, Pakistan. It is the 40th largest city in Pakistan and fourth ...

and Peshawar Branch In the Province of Balochistan; Quetta Branch In the Province of

Gilgit-Baltistan Gilgit-Baltistan (; ), formerly known as the Northern Areas, is a region administered by Pakistan as an administrative territory, and constituting the northern portion of the larger Kashmir region which has been the subject of a dispute bet ...

;

Gilgit Gilgit (; Shina: ; ur, ) is the capital city of Gilgit–Baltistan, Pakistan. The city is located in a broad valley near the confluence of the Gilgit River and the Hunza River. It is a major tourist destination in Pakistan, serving as a h ...

Branch In

Azad Kashmir Azad Jammu and Kashmir (; ), abbreviated as AJK and colloquially referred to as simply Azad Kashmir, is a region administered by Pakistan as a nominally self-governing entitySee: * * * and constituting the western portion of the larger Ka ...

;

Mirpur Mirpur may refer to several places: In Bangladesh * Mirpur Model Thana, a locality in Dhaka ** Mirpur DOHS, a neighbourhood of Dhaka ** Mirpur College, a private college ** Mirpur Stadium or Sher-e-Bangla National Cricket Stadium * Mirpur Up ...

Branch

References

External links

Official site
{{authority control Banks of Pakistan Government-owned companies of Pakistan Companies based in Karachi