Islamic banking yet to attain prime objectives: Ishrat

Former governor of the State Bank of Pakistan and Dean Institute of Business Administration Karachi, Dr Ishrat Hussain while addressing to the participants of two-day conference on "Towards Financial Inclusion: Developments in Islamic Economics, Banking and Finance", held under auspices of Centre for Excellence in Islamic Finance (CEIF), IMsciences at local hotel has said that Islamic banking system yet to attain prime objectives of poverty elimination, income inequalities and welfare of common man.
Dr Ishrat Hussain said the Islamic finance system has grown up by only 12 percent during last over a decade, which is unsatisfactory towards gaining main features of the system. He said around 23 percent people don't have access to formal banking system that increases income inequalities across the country. Similarly, he expressed regret that the Islamic finance banks are not deployed their assets for benefiting small farmers, to increase productivity. He expressed displeasure over the existing strategy towards availing main feature of the Islamic finance system. Dr Ishrat said, "We need professionals at both Shariah and Islamic banking system."
The State Bank of Pakistan and Ministry of Finance and relevant institutions are committed to promote Islamic banking system, he added. Unless we can not gain the desired objectives through Islamic finance, till access to finance available to all segment of the society, he maintained. He stressed the need for ensuring income equality to reduce poverty which had completely neglected in Islamic finance system. Other speakers said the efficiency is growing in Islamic finance system which is essential to reduce poverty alleviation and income inequalities. They further said around 80 percent people don't have access to banking accounts, while money was covered from few capitals and feudal lords in the country.
Dr Mehboob ul Hasan, Professor King Saud University, Saudi Arabia said on the occasion that it is dire need to devise a vision and should develop system parallel to conventional banking system. In his welcome address, Dr Muhammad Mohsin Khan, Director of IMSciences highlighted the aims and objectives of CEIF and stated that they are working on a vision for the contribution of Islamic finance and its practices and enhancement of financial inclusion within society.
Dr Karim Ullah, Co-ordinator and PhD scholar, Islamic Financial Service, elaborated with statistical support about progress, and growth in Islamic finance system. Later, a memorandum of understanding was also signed during the conference, which was singed by heads and representatives of various commercial banks, and financial institutions to develop a mutual action plan for promotion of Islamic finance system.