Islamabad: Finance Minister Ishaq Dar launched Shariah-compliant investment instruments, saying that government intends to promote Islamic financial system and gradually eliminate interest-based banking in Pakistan.

Addressing launching ceremony of Shariah-compliant products by National Savings, state-owned entity which falls under wings of Finance Ministry, Dar said, “Government remains committed to implementing an interest-free Islamic financial system.”

Finance Minister said that Islamic banking has witnessed strong growth in recent years and currently enjoys share of 21 percent in country’s banking pie. Products will be available from July 1, said Dar.

National Savings will offer four products i.e. saving accounts and term-account of 1-, 3- and 5-year tenors, said Finance Minister. “This is first time that National Savings is introducing Shariah-compliant products,” he said. “We wish that these products will dominate in coming years.” He was of view that entire banking system cannot be converted overnight or in short span of time. “However, such serious steps will help us in progressing towards an interest-free, Islamic financial system,” he said. Dar said that Shariah-compliant products were one of announcements made in recent budget.

Published in The Daily National Courier, June, 27 2023

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