ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has disclosed that the size of the Pakistani Islamic finance industry is estimated to have crossed $42 billion.

According to the SECP’s Strategic Action Plan (2024-26) issued on Monday, along with laying sound regulatory environment, SECP has also been facilitating the industry through multi-pronged strategy of capacity building and awareness raising.

According to a report by Fitch Rating, the size of the Pakistani Islamic finance industry is estimated to have crossed $42 billion. With a 67 percent share in total assets, Islamic banks dominate the Islamic finance industry.

However, Sukuk only represents 26 percent of the outstanding amount, Islamic funds make up 6 percent of total assets, and takaful constitutes one percent of total contributions. These combined segments make up 33 percent of the entire Islamic finance industry, indicating its growing systemic importance.

The SECP has been facilitating the sustainable growth of Islamic finance in Pakistan, a practicing Muslim-majority country and a potential market of faith-based products.

The Shariah objectives for Islamic finance, that SECP is pursuing for accomplishment included protection, circulation, and Halal augmentation of wealth; justice and fairness in return distribution; actual economic activities; and (4) societal well-being enhancement. Its vision is to spur a sustainable and resilient growth of Islamic finance in non-bank financial sector that creates value for all stakeholders and contributes in attaining an equitable and inclusive financial system.

Its mission is to foster a sustainable and resilient growth of Islamic finance in non-bank financial sector, conducive regulatory framework, achieve greater standardization, sustainable market development, and promotion and awareness, SECP added.

Copyright Business Recorder, 2024