Islamic banking expanding rapidly in the world: Ishrat

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Social media should give Islamic Banking due importance

Staff Reporter
Karachi

Special Advisor to the PM on institutional reforms, Dr Ishrat Hussain in his speech on the occasion said that he was thankful to Pakistan Observer for inviting him to RTC-IV.

Remembering very devoted journalist Zahid Malik, who floated the idea of such conferences, Ishrat Hussain said he had rightly pointed out the challenges such as human development, inflation and unemployment, etc.

Dr Ishrat Hussain said that it is very important event as Islamic banking was expanding rapidly in the world.

Islamic financing is attractive and has all salient features, including the asset-based financing. He said that if you see the global financial crises in 2008, world banking was facing severe problems but Islamic banking was unfazed.

He said that in Pakistan, some banks refused the Islamic banking system due to which the factor of excessive wealth emerged. Dr Ishrat further said that non-financial intuitions should join the world with Islamic banking windows.

Under Islamic banking business transactions – supplier-user of the fund shared equitably, hence, misfortune does not fall on borrower and borrower does not become insolvent.

That is why Islamic banking is a better alternative. We all have to take responsibility and social media should give Islamic banking due importance.

In 2001 we started Islamic banking in Pakistan and the challenges till now include lack of Sharia compliance products.

Islamic deposits increased but not the assets. Mobilisation is there in underserved sectors which can be achieved through Sharia boards.

He also highlighted lack of transaction-based Fatwas and need for human resource, the role of NBFIs in Islamic banking, Takaful and Modarbas.

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