ISLAMABAD: President Arif Alvi Monday emphasized on implementation of the basic principles of Islamic financing to help establish a society based on equality and compassion.
He was addressing the 10th Global Islamic Finance Awards ceremony in which he also received the Global Islamic Leadership Award given to Pakistan in recognition of its efforts for promotion of Islamic financing.
Addressing the ceremony, Alvi called for focusing on Islamic principles of finance to prevent concentration of wealth in the society, and to eliminate exploitation by discouraging elitism.
"Islam has nothing to do with exploitation and elitist culture. Therefore, such approaches should be discouraged in Islamic financing," he emphasized.
The basic principles of Islamic financing, he pointed out were fairness, equality, justice, transparency and pursuit of social harmony.
He said the basic purpose of Islamic financing instruments should be uplifting the poor people out of poverty.
He said that Islamic financing was increasing around the world but its full potential needed to be exploited.
The president appreciated the fact that 17 percent of Pakistan's banking sector had tuned to the Shariah-compliant instruments.
He also appreciated the role played by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) in promotion of Islamic banking in the country.
The president pointed out that Islamic finance contributed $2.7 trillion globally, adding that it was comparatively much less as compared to conventional banking.
He also underscored the need for raising public awareness about Islamic finance, particularly the spirit leading towards its positive impact on society.
Alvi also emphasized the need for economic empowerment of women, saying this was vital for development of the country, adding that women should also be given their due share in inheritance.
He pointed out that digital economy had prospects of benefiting many segments of society, particularly women and persons with disabilities.
Speaking on the occasion, SBP Governor Reza Baqir expressed the commitment to promote Islamic financing and take it to the levels never seen before.
He said Islamic banking in the country covered 13 percent of small and medium enterprises and six percent of agriculture sector, which offered immense opportunity to further explore those areas.
He said there was a Shariah Advisory Committee comprising three schools of thought, Shariah boards and other mechanisms to ensure compliance with Shariah principles in the Islamic financing.
He said that the SBP was also playing its role for creating awareness among the people about the Islamic financing.
On the occasion, the SBP was also awarded with the Best Central Bank of the Year award for promoting Islamic banking, while others who also received the awards for their contribution to Islamic financing included renowned scholar, Mohammad Taqi Usmani.
Copyright Business Recorder, 2020
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