Pakistan leads Islamic banking industry with large number of experts
Pakistan has emerged as a global
leader in the Islamic banking sector, with nearly 40 percent of the world’s
Shariah-compliant financial experts originating from the country.
This recognition comes from Sheikh
Ibrahim Khalifa Al Khalifa, Chairman of the Accounting and Auditing
Organization for Islamic Financial Institutions (AAOIFI), who highlighted
Pakistan’s growing influence in shaping the future of Islamic finance globally.
Speaking at a reception hosted by
the Islamic Banks of Pakistan on Tuesday, Sheikh Al Khalifa commended
Pakistan’s significant contributions to Islamic banking, describing the country
as a key player and leading emerging market in the Islamic Banking Industry.
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The event was attended by prominent
figures from the banking sector, including Mufti Muhammad Taqi Usmani, Jameel
Ahmed, Governor of the State Bank of Pakistan (SBP), Dr. Ishrat Husain, former
SBP Governor, Yousaf Hussain, President of Faysal Bank, and Irfan Siddiqui,
President of Meezan Bank.
Sheikh Al Khalifa praised Pakistan's
large pool of Islamic banking experts, acknowledging their efforts to
strengthen the Shariah-compliant financial system worldwide. He emphasized the
need to extend the benefits of Islamic finance to underserved communities and
address the challenge of promoting social justice through the industry.
Reflecting on Pakistan’s economic
advancements, Sheikh Al Khalifa also commended the country’s efforts in
controlling inflation, noting that its progress is significant when compared to
similar economies.
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Muhammad Taqi Usmani highlighted the
importance of standardization in Islamic banking, pointing out that AAOIFI has
issued over 70 global standards for Islamic financial institutions. He also
acknowledged Pakistan’s progress in eliminating interest-based financial
systems and noted that the country's parliament has set a timeline to achieve
this goal. Usmani emphasized that Islamic banking must align with Quranic
principles, ensuring equitable wealth distribution and social justice while
addressing challenges like wealth misuse.
Jameel Ahmed, Governor of SBP,
discussed the global growth of Islamic banking, now valued at $3.7 trillion,
and stressed the importance of developing local Islamic financial systems. He
outlined the creation of a high-level steering committee to advance Islamic
banking in Pakistan and addressed challenges such as transitioning government
debt instruments to Islamic structures. He also emphasized the need for an
interbank Islamic market, liquidity management tools, and increased awareness
and training for skilled professionals.
Dr. Ishrat Husain, former SBP
Governor, spoke on the transformative potential of Islamic finance in
addressing societal challenges. He urged Islamic banks to focus on promoting
social justice and poverty elimination in line with Islamic principles of
fairness and equity. He called for investments in sectors like Small and Medium
Enterprises (SMEs), agriculture, affordable housing, and education, all of
which are crucial for sustainable economic growth and social development.
Source: Business Recorder