KARACHI: The Institute of Business Management’s (IoBM) two-day International Conference on Islamic Banking and Finance (ICBIF) 2023 began here on Tuesday.
Focusing on the theme of “Sustainable Development and Islamic Finance: Examining the Role of Islamic Financial Institutions in Promoting Sustainable Economic Growth, Ethical Investments, and Technological Innovations”, the high-profile conference highlighted how Shariah-compliant finance is paving the way for a sustainable economic landscape in the country.
Distinguished speakers at the event included Ghulam Muhammad Abbasi, Director, Islamic Banking, State Bank of Pakistan, and Indonesian Consul General in Karachi, Dr. June Kuncoro Hadiningrat, while the welcome address was delivered by Talib S. Karim, President IoBM.
The inaugural session was attended by Chief Executive Officers of numerous financial institutions of Pakistan including Faysal Bank, Bank Alfalah, BankIslami, Meezan Bank, and Dubai Islamic Bank.
The first day comprised insightful sessions that focused on subjects like the integral role of Islamic Financial Institutions in sustainable economic growth and their potential global contribution to achieving SDGs. Participants delved into the strategic utilization of Islamic modes of financing for supporting diverse SDGs at both local and global levels.
The conference also highlighted the necessity of regulatory standards for Islamic Financial Institutions to promote sustainable growth and ethical investments. Additionally, it addressed the challenges non-bank Islamic Financial Institutions face in aligning with and contributing to various Sustainable Development Goals.
Ghulam Muhammad Abbasi, Director, Islamic Finance, State Bank of Pakistan said: “We’re in an era where environmental shocks and socioeconomic inequalities increasingly destabilise economies. Recognizing that traditional finance’s unchecked production, consumption, and resource distribution negatively impact the environment and society, a recent S&P Global Report forecasts green, social and sustainability-linked bond issuances to reach USD 1 trillion, comprising 16% of total issuances in 2023.
Amid climate crises, economic fluctuations, conflicts, and pandemics, a UN SDG Report reveals progress on over half the targets falling below expectations, with 30% regressing. Islamic finance, being asset-backed, facilitates a transition to sustainable finance by minimizing debt crises and ensuring funds align with their intended purpose. It prioritizes social and ethical considerations, and risk-sharing, and avoids excessive uncertainty.”
Dr Ishrat Husain, former Governor of the State Bank of Pakistan and Advisor to the Prime Minister stated: “The fundamental purpose of Islamic banking is the human dignity. The aim is to provide opportunities to marginalized communities to lead a dignified life. At the same time, it also fills the gap among social classes.
However, Islamic financial institutions should have a product differentiation from conventional banking to strengthen market penetration.”
In his welcome address, Talib S. Karim, President, IoBM noted: “The ICIBF is IoBM’s flagship event, drawing a significant response from Islamic banks. Our Center for Islamic Business and Finance (CIBF), led by Dr. Imam Uddin, offers diverse programs supporting various careers in relevant fields of Islamic banking and finance. Sustainability is a core focus of this conference, and I express gratitude to our international partners. It is relevant here to emphasize on academia-industry linkages.”
At ICIBF 2023, the 14th Cambridge Global Islamic Finance Report 2023 was also launched by the Cambridge Institute of Islamic Finance (Cambridge IIF), UK. Prof Dr Humayon Dar, Director General, Cambridge IIF, UK, presented the report and addressed the audience.
The conference included a host of other sessions, as well, where distinguished individuals from financial bodies, academic institutions, and regulatory authorities not just from Pakistan but across the globe including the Middle East and Malaysia shared their expert analysis on numerous subjects.
Copyright Business Recorder, 2023