TRUE to his commitment to move gradually towards the cherished goal of a Riba-free economic system, Finance Minister Ishaq Dar said on Monday that Pakistan has a comprehensive strategic plan in place aiming at promoting the growth of Islamic finance, but asked financial institutions including banks to be fair and transparent in its implementation. Speaking at the inaugural Islamic Capital Markets (ICM) Conference, jointly organized by the Securities and Exchange Commission of Pakistan (SECP) and the Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI) in Karachi, he said the country has a financial inclusion strategy that covers all the components needed to create Islamic financing, however, the price has to be fair and competitive so that the first choice to have Islamic finance products to raise funds can be fulfilled.
What the Minister has stated is a welcome development as this newspaper too has been contributing its share in augmenting efforts of the authorities concerned to promote interest-free system as per requirements of Shariah. The Minister did not elaborate on the comprehensive strategic plan for Islamic finance but the announcement is a clear indication that the Government was determined to promote Islamic finance, which has bright prospects not just in Pakistan but also in other countries as it has already been integrated into major financial markets worldwide, running parallel to the global financial system. The seriousness of the Government was also reflected in the MoU that was signed by the AAOIFI and the SECP under which the former will help the latter launch Shariah-compliant products, under the guidance of accounting and other standards set by AAOIFI in Islamic finance. Once an elaborate regulatory mechanism and standards are in place, it will surely give a boost to the Islamic finance in the country. It was good to hear from SECP Chairman Akif Saeed that they are implementing comprehensive reforms through legal amendments to the Modaraba Ordinance and that they aim to promote Islamic capital market within the next two years.
