KARACHI, March 10: Habib Bank AG Zurich and N J Auto Industries on Thursday entered into an agreement for providing Islamic financing under the scheme of “Ijarah” for the purchase of motorcycle.

N J Auto Industries are manufacturers of SP70 (Super Power) motorcycle in collaboration with Chinese company. The plant has the capacity to produce 100,000 units per annum and is using 88 per cent local parts and 18 per cent imported parts.

The chief executive officer of Habib bank AG Zurich M Haroon Ahmed and the chief executive of N J Auto Industries Ubaid Pirani signed the memorandum of understanding on behalf of their respective organizations.

The objective of making available interest free financing is to promote interest free economy and provide pure Islamic financing to those who could not get financing facility owing to interest.

The Meezan Bank has also agreed to provide pure Islamic consumer financing to N J Auto Industries. This is the first kind of agreement for providing interest free financing to purchase motorcycle, says a press release.