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Significance of Islamic banking Highlighted

April 27, 2014



Islamic banking industry could develop at faster pace if it is practiced in true spirit and principles of Sharia by professionals of banking and religious scholars of the field of finance. Addressing the concluding session of third Islamic FinanceExhibition and Conference (IFEC) on the speakers lauded efforts of scholars, Islamic bankers and regulators in the promotion and development of Islamic banking as a replacement of riba or interest-based banking.

They praised the efforts of State Bank of Pakistan (SBP) for devising a fiveyear strategic plan and Sharia guideline framework for the Islamic Banks, which they term, will expand Islamic banking industry with check and balance. Saeed Uddin Khan, Head of Islamic Banking Division, Sindh Bank, said that the customers at large could be attractive through boosting their confidence in Islamic banking, its offers and products must be truly in accordance with principle of Islam.

The high confidence of customers in Islamic banking will guarantee expansion of Islamic banking industry and its business throughout the country. It could be done through building a strong perception of Islamic banking in line with its Sharia framework, he added.

KCCI President Abdullah Zaki said that the contribution of Pakistan in global Islamic banking is standing mere 2 percent whereas Arab countries and Malaysia are comprising lion share in the market. He said Pakistan Islamic banking should increase its share in global market with innovative products and services as it has immense potential.

Mufti Ahsan Waqar Ahmed, Sharia Advisor of National Bank of Pakistan, said that the research and development work on the products and services should be continued for the improvement in the system, and gearing up the penetration of the Sharia based banking in the society.

The Islamic banking professionals in the bank should be well trained of the principles of Islamic banking and financing from top level to grass root for real change and betterment in the banking practices.

The board of directors makes development plan and business strategy of the bank hence their decisions should be highly influenced under the guidelines of Islamic banking for its successful penetration across the board of financial institutions.

Mufti Zubair Usmani, Sharia Advisor of MCB Bank, Islamic Banking Division, said that creating awareness and educating masses especially young generation about Islamic banking is very crucial and fruitful for the industry and economy of the country.


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Source: National Herald Tribune (Pakistan)


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