News Column

Awareness about Islamic Banking in Pakistan

June 6, 2014


Banking anking sector has immense important for the growth and economic development of a country. Pakistan has a growing economy and banking sector is playing a vital role in it. Being a Muslim nation our first priority should be Islamic Banking. Efforts for economy wide elimination of Riba started during 1970s and most of the significant and practical steps were taken in 1980.

In 1980 initial steps were taken by the State Bank of Pakistan by changing the rules and regulation of the Banking sector. After that in 2001 first certificate had been issued to Meezan bank of Pakistan as a full fledge Islamic Bank. The demand for Islamic banking in Pakistan is strong. Industry is growing rapidly since 2002. For this purpose steps should be taken to educate the people.

The Role of education is crucial in every aspect of life. Education gives us knowledge and enhances our perception and our point of view about things in the right way. Education makes a person capable to do things right. It is quoted that "Education is that whole system of human training within and without the school house walls, which molds and develops men".

As we have discussed earlier that most of the people think that there is no concept of Banking in Islam. Let's agree that concept of Banking is not prescribed in Quran and Hadith but the other comprehensive source which lay out the foundation of Islamic banking is there. Shahriah provides the guide line about conducting business in fair way. Awareness of Shahriah roles and their compliances is necessary to promote Islamic banking in Pakistan. People should be educated that Islam emphases both Ibadat as well as mamlat. Most probably 75% teaching of Islam is about mamlat.

Ulemacan play their important role in the development of Islamic banking. They can create awareness in people about Islamic banking. They can take steps in the elimination of riba, and this is their religious obligation as well totell the people how strictly riba is prohibited in Islam.Ulema should give the reference to the Quran and Hadith to people.

Awareness of Islamic banks can be created with the help of media campaign. People can be encouraged to deposit their savings in the banks. Most of the people have spare money and they could not deposit their money in the banks. Such saving remains idol unless it would be invested in productive purpose. If people deposit their saving in the banks it creates capital formation which leads to employment opportunity in the country.

At the end considering to the current scenario we would say that the consumption of the Islamic banking could be high, if the awareness about Islamic banking is created among the public. But due to misconception and lack of awareness about the industry is not achieving its optimum level.

However for 10 years industry is growing rapidly. Growth rates can be increase by proper marketing and five years growth plan with the collaboration of state bank of Pakistan. Proper steps should be taken to educate the people;enhancement in the training of the staff should take into consideration.

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Source: National Herald Tribune (Pakistan)

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