Islamic banking has gained enormous international attention : Dr. Ayesha

Lahore : Provincial Minister for Finance Dr. Ayesha Ghaus Pasha has said that Islamic banking has gained enormous  international attention since a number of decades due to its large growth and resilience to financial crises as well as the nature of Sharia-compliant finance models that focus on the principles of investment in real assets and risk-sharing.The International Monetary Fund (IMF) has endorsed the principles of Islamic finance by saying that Islamic finance can help to promote macroeconomic and financial stability. Its principles of risk-sharing and asset-based financing will promote better risk management by both financial institutions and their customers, as well as discourage credit booms

She expressed these views while addressing the 5^th Global forum on Islamic finance by COMSATS Institute of Information Technology Lahore.

She said that as a fast-growing emerging market and a major economy within the countries of the Organization of Islamic Cooperation, Pakistan has a mature financial industry that, in the recent past, has been focusing on broadening the Sharia-compliant sector in a country with more than 190 million people.Islamic finance is expected to take off in Pakistan in coming years due to new regulations on Sharia-compliant banking, new industry-supporting regulatory bodies, as well as rising demand from foreign investors. Pakistan’s Islamic banking industry has been growing at over 30 per cent per annum over the past five years, which is above the average global rate. If this trend continues, it can be expected that by 2018 Islamic banking assets in the country would be worth $17.6 billion. This growth is supported by the strategy of the State Bank of Pakistan, which seeks to double the number of Islamic banking branches from about 1,200 and increase.The Government is serious in supporting the growth of Islamic Banking in the country.  It has taken steps required for effective implementation of Islamic finance that include formation of task force under the leadership of Senator Muhammad Ishaq Dar, Federal Minister Finance and Saeed Ahmad, Deputy Governor, SBP to undertake amendments in legal and regulatory framework. The issuance of sukuks by the government during the last three years, including the recent issuance of $ 1bn international sukuk, is proof of the government’s commitment to Islamic finance. We are exploring options of Islamic borrowing instruments at provincial level also.

Dr. Ayesha Ghaus Pasha congratulates the COMSATS to hold the forum on Islamic Finance and ensure the presence of representatives of 8 countries. She said that she expect from experts, researchers and universities to play their due share to permute the Islamic Banking.