Pakistan: it is time to celebrate and lead
THE Islamic banking industry (IBI) has achieved the highest year-on-year growth in asset and depos-its since 2015, thereby increasing the market share in the overall industry to 17% and 18.7%, respec-tively.
The 5 years CAGR has also been impressive at 20%.
At the same time The Governor of State Bank of Pakistan (SBP), Dr. Reza Baqir, has been appointed as the Chairman of General Assembly of Islamic Financial Services Board (IFSB) for the year 2022 from his current position of Deputy Chairman of the Council of IFSB.
In a global context Pakistan is ranked at No. 7 in terms of Islamic Banking markets with a total size of USD 27 billion amounting to 1.3% of the overall industry size. SBP has unveiled an impressive Stra-tegic plan which projects and expects to propel the industry reach Rs 10 trillion with a 30% market share by 2025.
This commitment and continuous efforts to promote Islamic Banking in Pakistan both locally and internationally came into further limelight dur-ing recently concluded Global Islamic Finance Awards (GIFA) 2021. GIFA is an internationally respected platform from UK recognizing excellence in banking & finance in the Islamic world.
Since 2011, the Awards have been presented to individu-als, institutions and government departments glob-ally who have shown outstanding performance in promoting this segment.
This year’s GIFA had 74 award categories with participation from 25 countries. Our Country had a shining contribution and stood out in terms of our leadership & ambition which needs to be high-lighted and celebrated. The list includes key market players impacting and influencing the industry prominently.
Best Islamic Stock Exchange: Pakistan Stock Exchange – Dr. Shamshad Akhtar the chairperson of PSX has been an inspirational leader and strong proponent of Islamic Banking and UN – Sustainable Development Goals (SDG) which has strong con-vergence with Islamic Banking.
PSX boasts total listed capital of Shariah compliant companies of Rs 770 billion, making up 53% of the total capital of all listed companies.
PSX presents a strong product suite for investors looking to invest according to Islamic principles of Finance.
Islamic Banker of the Year – Mr. Irfan Siddiqui President & CEO of Meezan Bank received this prestigious award in view of his outstanding leader-ship role for the industry for more than 2 decades.
Mr. Irfan Siddiqui has been the driving force behind his bank and the promotion of Islamic banking across the country.
His vision has been clear over the years and each year we see Meezan Bank in-crease their market share and is ranked amongst the top 5 Bank of the country and is the 5th strongest Islamic Bank in the world.
Meezan Bank also won the Shariah Authenticity award due to its world class and renowned Shariah Board, expertise & platform which continues to dazzle and play an active role in vision of the Bank and constantly deliver to evolving customers need based on Shariah principles. Thus, providing an important benchmark to the industry and other mar-ket players.
Most Outstanding Leader in Islamic Banking – Mr. Afaq Khan – Islamic Banking Head of HBL richly deserved this recognition. A global banker long committed to the cause of Islamic banking and implementing with business success in prominent Islamic Banking Windows of large international Banks having presence in multiple countries.
He has been instrumental in strong focus of HBL in this growing segment with exciting plans for increasing market share in the near future. HBL-Islamic also bagged an award for the Roshan Digital Account (RDA) initiative of Govt. of Pakistan which has been an overwhelming suc-cess and contribution of Islamic Naya Pakistan Cer-tificate (INPC) in this scheme has been whopping 40% to total NPC wallet.
Best Bank for Transformation & Innovation: Faysal Bank – Mr. Yousaf Hussain President & CEO had taken up the most challenging task of Bank’s conversion to Islamic.
He has successfully managed to steer this process with little business disruption to achieve their Shareholders vision.
The Bank while pursuing the transformation phase also provided new and innovative products, which bears testament to the pragmatic approach of the leader-ship and the zeal of the team.
Best Islamic Banking Brand: Bank Islami-The Bank is behind Meezan in terms of its market share. The young and energetic CEO of the Bank Mr. Amir Ali has been providing this impetus with his all-round strong leadership in all fronts.
This has paved way for strong brand prominence and aware-ness of the Bank, thereby supporting the business objectives of the organization and strategic pillars of SBP.
Best Islamic Banking Window for Global Ex-pansion : Habib Metro SIRAT- We have important franchise names from Pakistan which have interna-tional markets & successful operations in Fashion, Food & Football business outside the country.
If you look at Finance especially Islamic Finance, there appears to be a vacuum. SIRAT is a global Islamic banking brand of Pakistan origin that has been exported to international markets where Habib Metro Bank’s parent bank, Habib Bank AG Zurich, enjoys a presence.
SIRAT products are now avail-able in UAE, South Africa and UK with plans for new group markets soon.
These exciting propositions diversified nature of accolades augurs well for the industry prospects in which all the stakeholders need to rally together under strong Government support and regulatory guidance to fulfill and exceed the overall Strategic objectives. To conclude, the stage is set for our country to play its due role for Islamic banking exponential growth and truly become a global model hub for market leadership, product innovation & capacity building.
—The Author is a Banker with passion for Islamic Banking
