The State Bank (SBP) has introduced an efficient and vibrant Islamic banking system to cater to the growing demand of the Pakistani business community.
This was stated by Pervez Said, director Islamic Banking Department and member Shariah Board of the State Bank, while addressing the members of the Faisalabad Chamber of Commerce and Industry (FCCI) on Thursday.
He said: "More than 250 institutions in 70 countries, including Malaysia, USA, Switzerland, Singapore and Thailand, are providing Islamic banking only because of its profitability and precision."
He said that bankers were expecting investment of $50 million during the first 10 years, while investment of $250 billion has made it the fastest growing financial system in the world, which is a remarkable progress.
He said: "Bahrain and Malaysia are the pioneers of modern Islamic banking but the SBP has provided the most efficient regulatory framework by removing its discrepancies.
He said that the Shariah Board of the SBP has tailored this Islamic banking system in line with the Islamic tenets.
"Muslim Commercial Bank, Al-Falah, Khyber Bank and Meezan Bank are already doing lslamic banking while many local, national and international banks have applied to start the Islamic banking," he said, adding, "Islamic banking has great potential in Pakistan but no serious effort has been made to bring about a much-needed change in the attitude of the business community."
He was critical of the mishandling of this issue and said that various stakeholders of this system must join hands to popularise it.
Responding to a question, he said, "the Islamic banking is the most dynamic system that provides opportunity to earn profit by doing business in addition to encouraging the fair distribution of wealth."
Earlier, Muhammad Yousuf Moti, acting president Faisalabad Chamber of Commerce and Industry, in his address of welcome said that assets of $200 billion were present in the Islamic banking system, which indicated its bright future. He said that this seminar would help businessmen to switch over to the Islamic banking system.
At the end of the seminar, Haji Bashir Ahmad, chairman Sitara Group of Companies, presented the FCCI Crest to Pervez Said, director Islamic Banking Department, SBP.