FPCCI lauds FM’s efforts for promoting Islamic Banking

The Sr. Vice President FPCCI has lauded the decision of Finance Minister for formulating a Committee for the implementation of recommendations of the Steering Committee for the promotion of Islamic Banking. The expansion and promotion of Islamic banking is the need of the hour because it is risk-sharing and asset-backed nature and was growing and unaffected in the period of global financial crisis.

Sr. Vice President FPCCI Shaikh Khalid Tawab, elaborated that Islamic Banking has become an emerging field in global financial market and the time has proved that it has tremendous potential and is growing at a very fast pace all around the world. He added that Pakistan, with more than 95 % Muslim population, and a constitutional obligation of ensuring a riba free economic system, has huge potential of expanding Islamic banking. This is, if the deposits are used on the basis of detailed analysis to get rate of return more than the conventional banks because at present the return on the Islamic banks instruments is lesser than the conventional banks.
He disclosed that Islamic financial country index ranked Pakistan 10th in world in terms of their role in developing, promoting and advocating Islamic banking and finance. Currently as many as 22 Islamic banking institutions comprise 6 full fledged Islamic banks and 16 conventional banks operating Shariah compliant branches. He further stated that the size of total assets of Islamic banking is just 11.4 % of total assets of all banks and 13.2 % share in Total deposits of all banks which need special attention for encouragement and enhancement.