AS the Islamic finance industry continues its impressive growth journey in the country, the Central Directorate of National Savings (CDNS) has also announced to begin the implementation of Islamic financing system next month.
In this regard, prize bonds and saving certificates would be issued for investment in accordance with the Shariah principles.
The top management of the CDNS really deserves appreciation for coming up with this idea which indeed will significantly increase its customer base and more importantly the revenues.
These days there is a growing appetite for Shariah-compliant finance in our country and the CDNS too will find huge investment in these products but there is also need to raise necessary awareness amongst the public about them both on the electronic and print media.
Then, the CDNS must also follow the path of digitalization in order to attract more customers.
Being an Islamic country, it is important for us that the business and commercial activities are coherent with the Shariah corridor and Islamic financial laws, and it is matter of satisfaction that over the last few years, a serious effort has been made to achieve that goal.
As the State Bank of Pakistan (SBP) is guiding the development of Islamic banking, at present twenty two Islamic banking institutions, five full-fledged Islamic banks and seventeen conventional banks having standalone Islamic banking branches are offering Shariah complaint products and services through a vast network across the country.
Pakistan has been ranked eighth in the Global Islamic Economic Indicator list with the sustainable growth of Islamic institutions in the financial sector and economy.
As of June-2021, Pakistan’s Islamic banking assets and deposits constitute 17 per cent and 18.
7 per cent of total banking assets and deposits of the country, respectively.
Last year, Islamic banking in Pakistan grew at an annual rate of 30pc, which has been the highest ever growth of the industry since 2015.
This upward trajectory must continue in the days ahead with the right kind of interventions from the relevant quarters.