Senate passes bill to strengthen Islamic Banking framework

Islamic Banking complies with Sharia (Islamic law) and its practical application through the development of Islamic economics
 

Banking Companies Amendment Bill passed to promote Islamic Banking  

On Saturday, the Senate passed the Banking Companies Amendment Bill, which aims to enhance the legal framework supporting Islamic banking in Pakistan. The bill, presented by Finance Minister Muhammad Aurangzeb, seeks to bolster the role of Islamic banking in the country while improving regulatory oversight.

The passage of this bill comes amid a tense Senate session, with expectations that the 26th Constitutional Amendment Bill might also be introduced. However, the session was delayed multiple times, eventually starting at 11:10 p.m. following a series of notifications changing the schedule throughout the day.

 

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During the session, Finance Minister Aurangzeb highlighted the key aspects of the amendment, stating that the bill would strengthen the legal foundation for Islamic banking and enhance the regulatory role of the State Bank of Pakistan (SBP). He emphasized that the bill promotes financial inclusion and simplifies the process for lodging complaints with the Banking Mohtasib.

The finance minister also noted that the 2008 global financial crisis led to the collapse of many companies, and Pakistan is now introducing reforms to prevent similar crises in the future. Additionally, he mentioned forthcoming legislation to eliminate the non-filer status, pointing out that in several countries, citizens must have a national tax number (NTN) to vote.

 

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In response to a question regarding the independence of the SBP, the finance minister confirmed that it remains an autonomous entity, a status granted by parliament.

Source: Dawn

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