Islamic Banks’ assets predicted to reach Rs. 40 Trillion by 2027

The assets of the Islamic banking industry may surge up to Rs. 40 trillion and deposits are also expected to reach Rs.33 trillion by 2027.

According to estimates of Centre for Excellence in Islamic Finance (IBA-CEIF), aggressive growth in Islamic banking can be achieved if all stakeholders combine their efforts and a level playing field is provided to the industry.

The growth opportunities were discussed at a session titled, “Islamic Finance for Media Professionals” held at IBA-CEIF in collaboration with the Center of Excellence in Journalism (CEJ).

The session was led by IBA-CEIF Director Ahmed Ali Siddiqui, who provided insights about the basic working model and differences between Islamic and conventional banking. He also discussed the growth trend of the local Islamic banking industry which is now over 20 percent of the banking market.

It was stated that if major conventional banks start the conversion to Islamic banking based on the Federal Shariat Court decision and the State Bank of Pakistan (SBP)’s vision to convert the system to Shariah Compliant banking then the sector can witness yearly growth at the rate of 40 to 45 percent.

During the session, Faisal Shaikh, Head of Islamic Banking, Faysal Bank discussed the successful conversion journey of his bank to a full-fledged Islamic bank.

Islam Ahmed, Former Senior Joint Director, SBP shared the regulatory and Shariah governance steps in Pakistan to convert the banking system to Islamic principles.