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Business Banking

Albaraka Bank SME & Corporate Banking

Trade finance, guarantees, working-capital financing, and structured/investment banking — sourced directly from the bank's official Schedule of Charges and audited financial statements.

  • Trade Finance
  • LCs & Guarantees
  • SME/Commercial & Corporate
Quick Answer

Albaraka Bank Pakistan's SME, Commercial & Corporate Banking: trade finance (LCs, guarantees), financing products, and processing fee slabs — sourced to the bank's official Schedule of Charges.

Quick Answer

Al Baraka Bank Pakistan's business banking runs through two desks: SME/Commercial Banking for smaller businesses, and Corporate & Investment Banking for larger clients. Both cover trade finance (import/export Letters of Credit), guarantees, and Shariah-compliant working-capital financing — Running Musharaka, Tijarah, and Istisna, alongside the same Murabaha and Diminishing Musharakah structures used in consumer financing. Processing fees scale with facility size, from a few thousand Rupees for a small SME facility to millions for a large corporate one.

This side of the bank gets far less public attention than its retail products, but it's a substantial part of the business — Corporate Banking alone makes up roughly a third of Al Baraka's total assets, per its own segment reporting. This page pulls together what's actually documented about it: real fee schedules, not generic "contact us for corporate solutions" copy.

What's Available at Each Tier

Trade Finance
Import & Export LCs
Guarantees
Shipping, Customs & More
Working Capital
Running Musharaka, Tijarah, Istisna
Investment Banking
Advisory & Structuring

All figures on this page are confirmed from Al Baraka Bank (Pakistan) Limited's official Schedule of Bank Charges (July–December 2026) and its audited/interim financial statements. Business financing terms are negotiated case by case — treat the fee figures here as the published starting point, not a quoted offer.

Trade Finance: Letters of Credit

Al Baraka's import L/C charges follow a slab structure tied to the L/C amount — larger transactions pay proportionally more, with a separate, lower recurring charge for subsequent quarters the L/C stays open. A few representative slabs:

L/C Amount (up to)First QuarterSubsequent Quarters
Rs 800,000Rs 2,000Rs 1,000
Rs 5,000,000Rs 20,000Rs 10,000
Rs 20,000,000Rs 70,000Rs 35,000
Rs 100,000,000Rs 380,250Rs 190,125

Beyond the slab, L/C amounts exceeding Rs 100 million attract an additional Rs 4,000 per Rs 1 million (first quarter) and Rs 2,000 per Rs 1 million (subsequent quarters). Amendments that increase the amount or extend validity are charged Rs 1,000 flat plus the applicable slab rate on the increase. Export-side services — advising, confirmation, transfer, document handling — are priced separately, typically as flat fees (e.g., Rs 1,800 for L/C advising, Rs 1,200 for amendments) rather than the import-side slab structure.

Source: Al Baraka Bank Pakistan's official Schedule of Bank Charges (July–December 2026), Annexure I (L/C Issuance Charges). Full slab table and export-side charges available from the bank directly — this is a representative excerpt, not the complete schedule.

Guarantees

Guarantee charges also follow a slab based on the guarantee amount, billed per quarter (or part thereof) that the guarantee stays outstanding. A guarantee to a shipping company against a bill of lading is a flat Rs 1,800; guarantees to customs authorities and general financial/performance guarantees follow the slab table, starting around Rs 1,500 per quarter for a Rs 500,000 guarantee and scaling up from there. Amendments cost Rs 2,000 per amendment, plus the applicable slab charge if the amount or period increases. One point worth knowing: per the bank's own Shariah board, it doesn't charge a fee purely for issuing a guarantee commitment — the fee only applies when an additional service is genuinely rendered alongside it, since a bare guarantee commitment is treated as non-compensatory (Uqood-e-Ghair Muawada) under Shariah principles.

Source: Al Baraka Bank Pakistan's official Schedule of Bank Charges (July–December 2026), Section D.11 (Guarantees) and Annexure III.

Working Capital & Trade Financing Products

Beyond the Murabaha and Diminishing Musharakah structures used across Al Baraka's consumer products, its business financing book runs on a wider set of Islamic contracts — confirmed directly from the bank's own audited and interim financial statements, not marketing copy:

StructureWhat It's Used For
Running MusharakaRevolving working-capital financing on a partnership basis — one of the larger categories on the bank's financing book
TijarahTrade-linked financing for buying and selling goods
IstisnaFinancing for manufacturing or construction against a future delivery — a substantial share of the bank's total financing exposure
SalamAdvance-payment financing against future delivery of goods, common in agriculture and commodities
Export Refinance (SBP Islamic Scheme)Concessionary export financing under the State Bank of Pakistan's Islamic refinance scheme

Source: Al Baraka Bank (Pakistan) Limited's condensed interim financial statements, Note 12 (Islamic Financing and Related Assets), for the quarter ended 31 March 2026.

SME/Commercial vs. Corporate: Processing Fees

Processing, structuring, and advisory fees for fresh or renewed financing scale by facility size, and by whether you're classified as an SME/Commercial customer or a Corporate one — charged once, at first disbursement:

Facility Size (up to)SME/Commercial FeeFacility Size (up to)Corporate Fee
Rs 10 millionRs 5,000Rs 40 millionRs 27,000
Rs 50 millionRs 25,000Rs 300 millionRs 200,000
Rs 400 millionRs 200,000Rs 5,000 millionRs 2,000,000
Above Rs 400 millionRs 250,000Above Rs 10,000 millionRs 3,500,000

The bank's Head of CIBG/CBSME (Corporate & Investment Banking Group / Commercial & SME) has discretion to waive or subsidize these fees case by case, based on the overall relationship — so the published figure is a starting point for negotiation, not necessarily what every customer pays.

Source: Al Baraka Bank Pakistan's official Schedule of Bank Charges (July–December 2026), Section D.2–D.3 (Corporate + Investment Banking; SME/Commercial & Corporate).

Investment Banking

For structured finance and capital markets work, Al Baraka's investment banking fees are individually negotiated rather than published on a fixed schedule — advisory, arrangement, investment agency, and security trustee fees are agreed with the client and confirmed in the offer letter or term sheet. As a reference point, investment agency and security trustee fees each default to the greater of a flat amount (Rs 1,000,000 and Rs 500,000 respectively) or 0.05% of the facility amount, payable at first disbursement and annually thereafter, unless the bank's Head of CIBG/CBSME agrees to reduce or waive them.

Source: Al Baraka Bank Pakistan's official Schedule of Bank Charges (July–December 2026), Section D.2(ii).

Good For

  • Businesses comparing Al Baraka's trade finance and guarantee costs against other banks before choosing one
  • Understanding what Islamic financing structures actually back the bank's SME and corporate book
  • Getting a real fee reference point before a relationship-manager conversation, not a blank "contact us"
  • Confirming Al Baraka genuinely operates in this segment, not just retail banking

Frequently Asked Questions

Does Al Baraka Bank offer SME and corporate banking?

Yes — dedicated SME/Commercial and Corporate & Investment Banking desks, covering trade finance, guarantees, working-capital financing, and structured/investment banking.

How much does an Al Baraka Letter of Credit cost?

It follows a slab based on the L/C amount, from roughly Rs 1,250–2,000 flat for smaller amounts up to hundreds of thousands for large ones — see the official Schedule of Charges for your exact slab.

What is the processing fee for corporate financing?

It scales with facility size — from Rs 27,000 on a Rs 40 million facility up to Rs 3.5 million on facilities above Rs 10 billion — charged once at first disbursement, with discretion for the bank to waive or reduce it.

Does Al Baraka charge a fee just for issuing a guarantee?

Not purely for the commitment itself — per the bank's Shariah board, a bare guarantee is non-compensatory under Shariah principles; fees apply when an additional service is genuinely rendered alongside it.

What Islamic financing structures does Al Baraka use for working capital?

Running Musharaka, Tijarah, Istisna, and Salam, alongside SBP's Islamic export refinance scheme — confirmed directly from the bank's own financial statements.

Ready to bank with Al Baraka?

Verify current rates, offers, and terms directly with Al Baraka Bank Pakistan before you apply.

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Last verified: 7 Sept 2026.