Pakistan has better regulatory framework for Islamic Banking

Institution : Accounting and Auditing Organization for Islamic Financial Institutions - AAOIFI
13 December, 2018      469



The Islamic Banking Industry of Pakistan in collaboration with Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and contribution of Mufti Muhammad Taqi Usmani, launched Urdu version of the Book ‘Sharaie Mayaarat’. Renowned leaders from Pakistan’s financial sector spoke on the occasion.

Governor, State Bank of Pakistan, Mr. Tariq Bajwa was the Chief Guest, while Mufti Muhammad TaqiUsmani, Chairman of AAOIFI Shariah Board, Shaikh Ebrahim Bin Khalifa AlKhalifa, Chairman of AAOIFI Board of Trustees, Mr. Omar Mustafa- Acting Secretary General- AAOIFI and Mr. Irfan Siddiqui- Chairman Steering Committee were among the keynote speakers on the occasion. The ceremony was widely attended by heads of national and multinational banks operating in Pakistan, senior bankers, government officials and media.

Governor SBP Tariq Bajwa said, “I feel honored to be here on this important occasion of launch of Urdu version of AAOIFI’s Shariah Standards. We are all aware that national language is an important ingredient of any culture and most effective mode of communication in a country. With this in perspective, translation of global standards into our national language is an important milestone, as it would remove language barriers to understand Shariah Standards. I believe this Urdu version of the Shariah Standards will be instrumental in improving awareness about Islamic finance especially amongst the Shariah scholars, academia and practitioners of Islamic finance. The scholars and all other experts involved in this project deserve great appreciation for their commendable role.”

Mr. Irfan Siddiqui- Chairman Steering Committee said, “I feel pride in informing the respectable guests that Urdu is the second language after Arabic to have this book that was principally composed in English language. The religious scholars and people related to Islamic Banking will be able to get convenient guidance from the Urdu language version. On behalf of Pakistan’s Banking Sector, I would like to appreciate the cooperation by Islamic Banking Department of State Bank of Pakistan for development of Islamic Banking in our country. We are thankful to every member of the team for their determined efforts in turning this landmark into possibility.”

As of today Islamic finance globally is worth USD 2 trillion. The first Islamic Bank in Pakistan was launched in 2002 and currently there are five full-fledged Islamic Banks with 16 conventional banks with Islamic Branches and Windows. Pakistan, which has traditionally maintained very modest FDR ratios below 50% has experienced an improvement in its Islamic banking sector FDR to approximately 58% as of first half of 2017. The Total Islamic Banking Network has reached Rs. 3,969 billion with Total Deposits of Rs. 2,033 billion and Asset Portfolio at Rs. 2,482 billion. Islamic Banking share of overall Pakistani Banking Industry is 12.90% of Total Assets and 14.80% of Total Deposits. Islamic Banking globally has witnessed 18% growth rate in the last four years.

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