LAHORE: The Lahore Chamber of Commerce & Industry and State Bank of Pakistan jointly organised an informative seminar on “Fundamentals of Islamic Banking and Finance Concepts on Wednesday.
The seminar was chaired by LCCI President Mian Abuzar Shad while Chief Manager SBP Tariq Riaz, Additional Director Muhammad Saleem, and renowned Islamic banking expert Dr. Muhammad Uzair Usmani also spoke on the occasion.
The Seminar was also attended by LCCI Executive Members, including Syed Salman Ali, Aamir Ali, Karamat Awan, Ms. Aamna Randhawa, Khurram Lodhi and Ahsan Shahid.
The objective of the seminar was to educate the business community on the principles and benefits of Islamic banking and its potential to revolutionize the financial sector.
LCCI President Mian Abuzar Shad in his address shed light on the impressive growth trajectory of Islamic banking in Pakistan. He appreciated the State Bank of Pakistan for its pivotal role in promoting this banking model across the nation.
He said that Islamic banking is rapidly expanding in Pakistan with six domestic and six international Islamic banks actively operating in the country. As of 2024, these banks manage over 5,000 branches nationwide, serving approximately 16.7 million account holders who have deposited Rs 7,268 billion. He said that these deposits account for 24% of the total deposits in the banking industry.
The LCCI President said that Islamic banks are responsible for financing worth Rs.3,504 billion, which constitutes 29% of the total financing in the banking sector.
He also referred to a landmark ruling by Pakistan’s Federal Shariat Court, declaring interest-based banking as non-compliant with Islamic principles. The court has mandated the complete transition to an interest-free banking system by December 2027.
Mian Abuzar Shad said that this presents a unique opportunity for Pakistan to align its financial practices with Islamic teachings. It is now the responsibility of the government to ensure that all loans provided by banks are free of interest.
“Our goal is to provide our members with the necessary tools and knowledge to make informed decisions about Islamic banking solutions. Today’s session marks another milestone in this journey,” he added.
The seminar featured comprehensive presentations by SBP officials and industry experts. Tariq Riaz and Muhammad Saleem spoke about the operational framework of Islamic banking while Dr Muhammad Uzair Usmani elaborated on its ethical foundation and its potential to foster economic stability.
Copyright Business Recorder, 2024