Managing Director, Bank of Khyber (BoK) Dr Munir Ahmad has said that the bank would shortly be converted into the largest Islamic bank of the country. However, he admitted problems and challenges in this way and urged the officials to be aware of the situation.
He expressed these views in his inaugural address, while opening a two-day training programme, for the officials of the bank on Islamic banking and finance here at the headquarters of the Bank of Khyber on Thursday.
The BoK and the Centre for Islamic Economics Darul Uloom Korangi, Karachi have jointly arranged the training programme.
Dr Munir informed the participants that the BoK branch in Quetta has already been converted into Islamic branch from October 1, 2004.
He said that the interest-based conventional banking has played havoc with the economy of the country for the last 57 years. He said that the launching of Islamic banking was vital to clean the Pakistani society of corruption.
He told the participants of the training programme that 'the success of the Islamic banking is a big responsibility bestowed on them, so they should know how to carry it forward towards success.' Similarly, he urged them to also learn how to disseminate this message in society in future.
The speakers of the training programme included Sharia Advisor Muslim Commercial Bank on Islamic banking, Dr Muhammad Zubair Usmani, Muhammad Imran, Chief Executive, Centre for Islamic Economics, Dar-ul-Uloom, Korangi Karachi.
The training would be held in three modules of which the first one would be completed within a week and the remaining two modules would be held after the holy month of Ramazan.
Talking on the occasion, Dr Muhammad Zubair Usmani, Sharia Advisor MCB said: "Islamic banking is getting popular day by day saying that before the launching of Islamic banking by the Bank of Khyber, four banks have already introduced it.
He said Standard Chartered Banks has also been issued licence, but it has yet to open a branch.
Differentiating the working of Islamic banking from the conventional one, he said, "the basis of the Islamic banking is the development of trading and partnership." He said: "According to the system, depositors and bank are partners in both profit and losses."
"Islamic banking system is not only gaining popularity in Pakistan, but also the whole world," he said, adding, "the United States and Israel are also working on it."
"The first Islamic bank was established in Egypt in 1963 and now more than 250 banks are selling Islamic products in the world," he told the participants saying that the future of the Islamic banking is quite bright.
Regarding the Centre for the Islamic Economics, Dar-ul-Uloom, Korangi, Karachi, he said that the centre has arranged training for Bank Al-Habib, MCB and Bank Al-Falah, which have been attended by the officials of these banks. The centre is also running one-month Islamic banking course programme, which has imparted training to about 500 students. A one-year diploma course has also been launched this year. The centre has published six books on Islamic banking and more are coming shortly.
Giving presentation, Muhammad Imran, Chief Executive (CE) of the Darul Uloom Centre, said that since the establishment the centre had trained more than 100 bank officials.
He said that more than 70 countries of the world have started Islamic banking in their financial institutions. These countries include Kuwait, United Arab Emirates (UAE), Saudi Arabia, Iran, Bahrain, Malaysia, Pakistan, United States, France.