Islamic financial system has potential to provide better banking and financial services than the conventional system, and the size of Islamic banking asset would get doubled in next 3 years from its current size of Rs926 billion, Pakistan China Joint Chamber of Commerce and Industry chairman Moazzam Ghurki said here.
Speaking to a think tank session, he observed that business and commercial activities should be coherent with the Shariah corridor and Islamic financial laws.
“The Islamic banking has witnessed over 30 percent growth during in last few years, which is certainly above the average global growth rate of Islamic banking and finance. If this trend continues, one should expect that in the next three years Islamic banking assets will at least double from its current size of Rs926 billion,” Ghurki said.
At present, there are more than 600 Islamic banking branches throughout Pakistan and 19 Islamic banking institutions are offering Islamic commercial banking services, according to PCJCCI chief.
He appreciated a new Islamic banking strategy of the State Bank of Pakistan to double the number of Islamic banking branches from 1,200 in the next four years, and to increase its market share from 10 percent to 15 percent.
Highlighting the need of capacity building of professionals in the Islamic finance industry, he explained that capacity building activities had not only helped improve human and institutional capacities but also enhanced communication and co-operation among concerned institutions.
Referring to a Global Islamic Finance report, Ghurki said that Pakistan had ranked at number nine in the world in terms of development of the Islamic financial services industry in the country.
He mentioned that Pakistan is second largest Islamic market (population wise) after Indonesia, and could become the most important player in Islamic banking and finance by attaining 20 percent market share.
PCJCCI Hamza Khalid vice president was of the view that the time has come where Pakistan should look ahead and concentrate on developing innovative products, which could be more towards perfection and purity rather than only towards mere permissibility by Shariah.
He also stressed for a strong role of Shariah advisors in making the Islamic banking more Shairah compliant. “Pakistan needs highly competent, motivated, and involved persons with required knowledge of conventional banking and finance as well as knowledge of Islamic Shariah.”
Khalid further stated that Islamic banking has a good potential to become an alternative system of banking, especially in view of the global financial crises. However, efforts needed to be made to modify the existing structure to provide better products and quality service within the ambit of Islamic laws, he added.—Agencies
