Banks urged to provide loans to local people in Fata

07 Jan, 2011

Governor Khyber-Pakhtunkhwa, Owais Ahmed Ghani Thursday urged all commercial banks operating in Federally Administered Tribal Areas (Fata) to extend loaning and financing to their clients, adding that it is unfair to keep their clients deprived of it despite getting huge deposits from them.
"When they are getting handsome deposits from their clients in Fata, they must provide them with loaning facility as well", the governor stressed while addressing the ceremony of opening of first Islamic banking branch of Bank of Khyber in Jamrud, Khyber Agency.
Ghani appreciated Bank of Khyber for its first intervention in Fata by initiating Islamic banking in tribal areas and congratulated management of the bank on this worthy decision. He added that it is an appreciative step, particularly in the scenario when the government is making all out efforts to revive and consolidate socio-economic conditions in Fata. He also said the step would certainly supplement efforts in this regard.
While comparing Islamic banking with conventional banking, he said that Islamic banking is the only alternative to the normal banking. "As being closed to nature, Islamic banking system is most relevant to our social and economic requirements and fulfils needs most perfectly".
Ghani observed that global economic recession and financial crises emerging at the international scene time to time have also compelled the economic and financial gurus to have a serious look at the Islamic banking system and its encouraging financial, Social and economic implications.
He congratulated Bank of Khyber for taking the initiative of extending Islamic banking to tribal areas and said that it is the more suited system for Fata where it has a wide scope and liking in the society in general. He said that the Islamic banking system could help remove the remove social and economic inequalities and bring social justice to the society.
Managing Director Bank of Khyber, Bilal Mustafa highlighted the performance of the bank in the field of Islamic banking and said it has achieved a unique credit in this regard. He said that the Jamrud branch of BoK would play its vital role in the socio-economic development of the area. He added that more such branches would be opened in Fata. He informed that under a recent decision, special counters for Islamic banking will be opened in all branches of Bank of Khyber.
MD BoK said that 19 branches and four sub branches of BoK Islamic banking are operating in the whole country besides 50 branches and four sub branches of normal banking with more than two lac (0.2 million) account holders. The BoK assets, he added, have reached rupees 51 billion and the bank has provided financial services of Rs20 billion to its more than one lac (0.1 million) accounts holders over the period of seven years. He assured that BoK will provide quality services to its clients in Fata as well.
Group Leader Islamic Banking Group, Arbab Riaz Ahmad highlighted features of Islamic banking system and said that in Pakistan, it is rapidly getting popular and confidence on Islamic Banking is on the rise.
Earlier, the governor formally inaugurated the Islamic Banking Branch of Bank of Khyber in Jamrud Khyber Agency by clicking the computer button and opening an account.
Attaullah Khan, Additional Chief Secretary and Chairman Board of Directors BoK, Sikandar Qayum, Secretary to Governor and Shafirullah, Political Agent Khyber Agency besides members of BoD attended the ceremony.

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