ISLAMABAD: Finance Minister Ishaq Dar said government is endeavouring to improve Islamic banking system as Islamic financing can help rein in poverty. “We are endeavoring to stabilise national economy. We are improving Islamic banking system. Islamic financing can help rein in poverty. We can steer out country from all economic challenges in collaboration with all Muslim countries. Addressing International Islamic Banking Conference (IIBC) here He said 21 percent banking system of Pakistan has turned into Islamic financing. Comprehensive system for distribution of zakat is in place in Pakistan. Islamic finance is sector of largest growth in world.

He held if there are such recommendations which could be brought into budget I would bring them at every cost. He stressed that Islamic products will have to be given priority. But prices of Islamic products should not be more than market prices.

“I assure government will move to Islamic products on availability of supply. All will have to work together to fortify Islamic finance industry, he remarked.

Governor State Bank Jamil Ahmad said national economy has to be made free from interest till 2027. State Bank and SECP are jointly working on reforms for promotion of Islamic finance sector. Growth is improving due to Islamic capital market in connection with national economy.

He indicated volume of Islamic capital market has reached 3 trillion dollars. Islamic banking rose by 24 percent in country in Pakistan during last 10 years.

Pakistan has issued sukuk bonds 2.8 trillion rupees. Committee is set up in state bank to convert government loan to Islamic sukuk.

Talks are underway for funding from capital market through Shariah compliance. Government financial needs can be met through launch of sukuk.

Published in The Daily National Courier, May, 30 2023

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