In recognition of its efforts for the promotion of Islamic Financing globally, Pakistan has been awarded the Global Islamic Leadership Award.

The award was received by President Arif Alvi at the 10th Global Islamic Finance Awards Ceremony in Islamabad on Monday. President Alvi in his address highlighted that Islamic Financing is increasing around the world but its full potential is yet to be realized.

The President appreciated the fact that 17 percent of Pakistan's banking sector has converted to the Shariah-Compliant instruments. He pointed out that the Sukuk bond was recently floated in the energy sector.

Alvi lauded the role of the State Bank of Pakistan (SBP) and the Securities & Exchange Commission of Pakistan (SECP) in the promotion of Islamic banking.

The Islamic Banking industry has continued its upward trajectory in Pakistan as the market share of the IBI’s rose to 15.3 percent witnessing a jump of one percentage point from 15.2 percent during the year till June 2020.

As per the SBP Islamic Banking Bulletin, during the quarter under review (April-June 2020), the asset base of the Islamic banking industry (IBI) grew by 8.1 percent to reach to Rs 3,633 billion while deposits of IBI stood at Rs 2,946 billion depicting quarterly growth of 9.5 percent; YoY growth was recorded 21.4 percent and 22 percent for assets and deposits, respectively.

Meanwhile, in his remarks on the occasion, Governor SBP Reza Baqir expressed the commitment to promote Islamic financing and take it to the levels never seen before. He said there is a Shariah Advisory Committee comprising three schools of thought, Shariah boards, and other mechanisms to ensure compliance with Shariah principles in Islamic financing.

The central bank Governor said that SBP is also playing its role in creating awareness amongst the people about Islamic financing.

SBP was also awarded the Best Central Bank of the Year award for promoting Islamic banking.