Islamic Finance Prospects Share of Islamic Banking Has Surpassed 21 Percent Irfan Iqbal Sheikh

FPCCI/Media/2023
17th July, 2023

Islamic Finance Prospects
Share of Islamic Banking Has Surpassed 21 Percent
Irfan Iqbal Sheikh

PR (Karachi): Mr. Irfan Iqbal Sheikh, President FPCCI, has apprised that the share Islamic banking has surpassed 21 percent in Pakistan; and, it is expected to grow rapidly – as SBP has been assigned to make all banking riba-free by 2027. He added that the growth in Islamic banking’s share is a testimony that individuals and businesses are inclined towards banking under Islamic principles.

It is pertinent to note that FPCCI and its central standing committee on Islamic Economics and Finance organized a high-profile seminar on “The Role of Islamic Finance in Solving Economic Challenges” – which saw the participation of top SBP officials; scholars of Islamic Finance; prominent businessmen and FPCCI’s members.

Mr. Irfan Iqbal Sheikh maintained that Islamic banking has been enhancing their operations successfully and prudentially in Pakistan; and, the market share of deposits and assets of Islamic banking in the total banking industry was 19.4 percent and 18.6 percent, respectively, for the year 2021. Additionally, net financing by Islamic banking institutions rose by 38.1 percent in 2021; which is a very strong growth in financing by any standard.

Mr. Suleman Chawla, Senior Vice President FPCCI, stressed that, keeping in view the judgment of Federal Shariat Court (FSC) on the Elimination of Riba from the Economy till 2027; and, steps taken by Government of Pakistan and Regulators in this respect.

Mr. Suleman Chawla demanded that Ministry of Finance; Ministry of Law; State Bank of Pakistan; Banking Council and other stakeholders should all come together and work towards making Pakistan a riba-free country. He added that prohibition of riba (interest) was absolute in all its forms and manifestations; as per the injunctions of Islam and in accordance with the Holy Quran & Sunnah.

Mufti Dr. Irshad Ahmed Aijaz, Chairman of SBP’s Shariah Advisory Committee & Chairman Shariah Board SECP, said that he is happy to see the enthusiasm of the business, industry and trade community of Pakistan towards transformation to Islamic financial system.

Mr. Ghulam Muhammad Abbas, Director of Islamic Banking Department of SBP; Mufti Muhamamd Najeeb, Chairman of Shariah Board, Summit Bank;Mr. Sakib Sherani, economist & CEO of Macro Economic Insights and Mr. Ahmad Ali Siddiqui, Director of IBA CEIF & Group Head of Shariah Compliance, Meezan Bank, also participated in the seminar.

Brig Iftikhar Opel, SI (M), Retd.
Secretary General