Islamic banking is witnessing a substantial upswing in Pakistan, fueled by the growing preference among individuals and businesses for financial solutions that adhere to Islamic principles. Highlighting this trend, the Federation of Pakistan Chambers of Commerce and Industry recently organized a seminar titled “The Role of Islamic Finance in Solving Economic Challenges.”
During the seminar, FPCCI President Irfan Iqbal Sheikh highlighted the increasing prominence of Islamic banking, with its market share exceeding 21 percent. Anticipating further growth, Sheikh revealed that the central bank has committed to eliminating riba (interest) from the entire banking system by 2027, as reported by the News International.
The seminar brought together notable figures from the central bank, Islamic finance scholars, prominent business leaders, and FPCCI members to shed light on the successful operations of Islamic banking in Pakistan.
In 2021, Islamic banking accounted for an impressive 19.4 percent of total industry deposits and 18.6 percent of total industry assets, consolidating its presence in the market. Notably, the sector’s net financing experienced remarkable growth, surpassing industry standards with a substantial increase of 38.1 percent.
FPCCI Senior Vice President Suleman Chawla emphasized the need for collaboration among the government of Pakistan, regulatory bodies, and stakeholders to effectively implement the Federal Shariah Court’s ruling on eradicating interest-based transactions by 2027.
Chawla called for collaboration among the Ministry of Finance, Ministry of Law, State Bank of Pakistan, Banking Council, and other relevant entities to transform Pakistan into an interest-free nation. He emphasized the absolute prohibition of interest in all its forms, aligning with the principles outlined in the Holy Quran and Sunnah.— Yeni Safak
