SBP role lauded for promoting Islamic banking
KARACHI: The State Bank of Pakistan (SBP) is playing a major role in spreading the market of Islamic banking in Pakistan and we salute their efforts. The conventional banks are also exploring the avenues in the Islamic sector due to the promotion of parallel banking by the State Bank in 2002. So unlike the concept, which was introduced in 1970s when the customers were forcefully being pushed towards Islamic banking, now the concept is effectively evolving when the customers have a free choice because more industry players are becoming visible.
It was stated by Meezan Bank Ltd Product Development and Shariah Compliance Vice President Fayyaz-ur-Rehman Khan at a seminar on ‘Islamic Banking’ organised by COMMECS Institute of Business and Emerging Sciences (CIBES) recently. The management of CIBES along with the faculty, staff and students participated in this seminar. A large number of guests from industry were also present in this seminar.
Khan started his speech with the concept and prohibition of Interest/markup in Islam and its culture as opposed to conventional banking, with the reference of verses from holy Quran and Ahadees. He also cleared several misconceptions about Islamic banking in the minds of people focusing on the difference between the conventional banking and Islamic banking. He specially targeted those people who think that both are the same. During the question and answer session he thoroughly the audience by explaining the efficacy and benefits of Islamic banking to citizens as well as the government. It was predicted that Islamic banking will become the future pillar of the country’s economy.
He also said that ‘Pakistan being an Islamic Republic with Muslim population of 98 percent has indeed a general notion that the people should adhere to Islamic principles. So when a customer knows that he/she can avail products, services and benefits of banking, in an Islamic way, the person will definitely move towards it’.
Highlighting the benefits of Islamic banking for students Khan announced QarzeHasna of Rs 1 million per annum to CIBES students, repayable in easy monthly instalments.
At the end CIBES Director Mohammad Arif Dossal thanked the respected speaker and all the participants for their interest in such nation building events conducted by CIBES. He said that the main objective of the seminar was to create awareness of issues regarding Islamic banking. The audience expressed satisfaction that they had acquired greater knowledge and that the discourse had corrected many concepts about Islamic banking. The COMMECS management reiterated that such informal but directed efforts would be continued to create ‘out-of-the-box’ learning for its students enabling them to get the professional edge needed to take them successfully towards their careers. staff report