SBP unveils ambitious five-year blueprint for sharia-compliant
banking system
The State Bank of Pakistan (SBP) has revealed an expansive
five-year strategic roadmap designed to transition the existing conventional
banking system into a Sharia-compliant financial framework for the nation.
The official launch of the plan, named "SBP Vision
2028," took place at the SBP Karachi headquarters, with Governor Jameel
Ahmad leading the ceremony attended by senior management.
"SBP Vision 2028," the inaugural plan introduced
after amendments to the SBP Act, delineates the central bank’s vision, mission,
and primary objectives spanning 2023-2028. Formulated through a consultative
and inclusive process involving key stakeholders, the strategic plan addresses
emerging risks and challenges to the economy and financial stability, including
climate change, digital innovations, disruptions, and cybersecurity threats.
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Governor Jameel Ahmad highlighted that the strategic plan
revolves around six key goals, encompassing maintaining inflation within the
medium-term target range, enhancing the efficiency and stability of the
financial system, promoting inclusive access to financial services,
transforming into a Sharia-compliant banking system, fostering innovation in
digital financial services, and modernizing SBP into a high-tech,
people-centric organization.
These strategic goals integrate five cross-cutting themes:
strategic communication, climate change, technological innovation, diversity
and inclusion, and productivity and competitiveness.
The SBP Vision 2028 places a strong emphasis on making SBP a
people-centric institution, with a primary focus on achieving and maintaining
price stability. Initiatives in the plan include improving the effectiveness of
monetary policy, addressing structural issues, and enhancing awareness through
quality publications.
Challenges
faced by SMEs in accessing bank financing highlighted
Ensuring the stability of the financial system is a key
priority, given the increasing complexity of shocks, including climate change,
technological advancements, cybersecurity threats, and financial innovations.
The plan aims to enhance the capacity of banks to manage such shocks while
improving the regulatory and supervisory capabilities of SBP.
While significant progress has been made in financial
inclusion over the last decade, the SBP Vision 2028 aims to increase bank
account coverage to 75 percent of the adult population. Efforts will also be
directed towards improving the quality of financial services for low-income
individuals, SMEs, and farmers, with a focus on sustainable and green
financing.
In alignment with the Federal Shariat Court’s decision, the
plan outlines a detailed strategy for transforming the conventional banking
system into a Sharia-compliant one, addressing challenges such as converting
government debt into Shariah-compliant financing and simplifying
Shariah-compliant financing products.
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The plan also underscores the continued development of a
robust Digital Financial Services Ecosystem, leveraging initiatives such as
Raast and digital banks. Efforts will be made to expand digital payments,
ensure effective oversight of digital financial institutions, and enhance
digital financial literacy through media campaigns.
Governor Jameel Ahmad acknowledged the crucial role of human
resources and technological infrastructure in achieving the plan’s objectives.
Investments in HR, technology, and infrastructure will continue to align with
market dynamics, with a goal of making SBP a paperless institution.
The plan includes explicit key success measures for each
strategic goal, aiming to enhance accountability and implementation. Monitoring
will be conducted by the Executive Committee, with annual updates provided to
the SBP Board of Directors.
In closing, Governor Jameel Ahmad expressed gratitude to the
Strategic Planning Team, Steering Committee, senior management, Executive
Committee, predecessors, and SBP employees for their contributions to the
development of the SBP Vision 2028.
Source: https://pkrevenue.com/