May 30, 2023
2 mins read

Pakistan plans to eliminate interest rates from economy by 2027

The Security and Exchange Commission of Pakistan and SBP are working together on reforms to promote the Islamic finance sector…reports Asian Lite News

The aim is to eliminate interest from the country’s economy by 2027, said State Bank of Pakistan Governor Jameel Ahmad, addressing the Islamic Capital Markets conference in Islamabad on Monday, Express Tribune reported.

The Security and Exchange Commission of Pakistan and SBP are working together on reforms to promote the Islamic finance sector, he added. The governor was seconded by SECP Chairperson Akif Saeed.

“In the past decade the country has seen a 24 per cent rise/growth in Islamic banking, with the Islamic capital market growing to around $3 trillion,” he said, adding that this has reflected positively in the overall state of the country’s economy. “Islamic banking now makes up 20 per cent of the banking sector in Pakistan.”

According to Ahmad, Pakistan has issued Sukuk bonds (Shariah-compliant bonds) worth Rs 2.8 trillion. A committee has been formed within the SBP to convert government debt into Sukuk, he informed, Express Tribune reported.

Ahmad said that there are ongoing discussions for funding from the capital market through Shariah compliance. The SBP governor was of the view that financial requirements of the government can also be met through Sukuk issuance.

“The size of the corporate banking sector in Pakistan is very small. There is a need to increase the corporate debt market while the Islamic banking market can be promoted further by promoting Sukook,” added Ahmad, Express Tribune reported.

Meanwhile, SECP Chairperson Akif Mian while addressing the conference said that after the Federal Shariat Court (FSC) ruling last year, directing that Pakistan implement a riba-free banking system and transform the economy by 2027 year-end, important measures have been taken to promote a an Islamic financial system within the country. The goal is to promote the capital market, he added.

In April 2022, the Federal Shariat Court ruled that the prohibition of Riba (interest) is absolute in all its forms and manifestations according to the injunctions of Islam and in accordance with the Holy Quran and Sunnah. Therefore, it should be eliminated from the country in five years, Express Tribune reported.

ALSO READ: Pak govt rejects Imran’s talks offer

Previous Story

Imran to be quizzed in Corps Commander House attack case

Next Story

17% of Lankans still face food insecurity

Latest from -Top News

‘Kill and Dump’ Haunts Balochistan Again

The latest killings have reignited accusations of extrajudicial executions and the use of counterterrorism laws to cover up custodial deaths in Balochistan….reports Asian Lite News Concerns have deepened across Balochistan following the

‘ASEAN Expands, But Keeps Its Soul’

Malaysian Foreign Minister Mohamad Hasan urged ASEAN to uphold its unity and strategic resolve amid intensifying geopolitical tensions and mounting external pressures…reports Asian Lite News Consensus and inclusivity will remain the cornerstones

Bangladesh bends to beat Trump’s blow

Dhaka seeks compromise as Trump’s 35% tariff looms large over key exports; Washington urges worker protections, factory relocation to US…reports Asian Lite News Bangladesh has opened the second round of critical trade

China seethes as US lands F-35s in PH

As US F-35 jets land in the Philippines for the first time, Manila cements its frontline role in Washington’s power play against rising China….reports Asian Lite News The Philippines is rapidly cementing
Go toTop

Don't Miss

Pak Parliament Joint Session on March 9 to Elect President

The newly elected National Assembly speaker Ayaz Sadiq on Sunday

Imran slams opposition for no-confidence motion

Pakistan PM said that the no-confidence motion against him would