SECP has released a diagnostic report on Islamic finance
The Securities and Exchange Commission of Pakistan (SECP) has released a diagnostic report to document the key issues and challenges facing Islamic finance in the non-bank financial sector. The report also takes stock of the current state of development of Islamic finance in the country and provides specific recommendations for its promotion.
The diagnostic study was launched during a roundtable discussion, organized in collaboration with the IBA Center for Excellence in Islamic Finance, at the IBA City Campus. Another diagnostic study and proposed FinTech framework prepared by Islamic Finance Advisory and Assurance Services (IFAAS), an advisor to the ADB under technical assistance, specifically address issues related to product offerings by the non-bank Islamic finance settings, were also published on the occasion.
Mr. Akif Saeed, Chairman of SECP, stated that the purpose of the exercise was to comply with the ruling of the Federal Shariat Court while standardizing and improving the quality of Islamic goods and services. He stressed that the proposed actions are specifically designed to accelerate the growth of Islamic finance in SECP’s regulated sectors.
Mr. Abdul Rehman Warraich, SECP’s Islamic Finance Commissioner, thanked worthy Sharia scholars and industry professionals for their valuable contributions, while also praising the SBP’s cooperation and support for the growth of Islamic finance in Pakistan.
CEIF Director, Mr. Ahmad Ali Siddiqui, and Associate Professor, Dr. Irum Saba, also spoke at the event. The round table participants agreed that Islamic finance is inevitable and that it is an engine for shared prosperity. Mr. Tariq Naseem, Head Islamic Finance SECP, and Mr. Farrukh Raza, CEO, IFAAS, presented the key findings of the diagnostic reports. Members of SECP’s Sharia Advisory Committee and Islamic Finance Functional Committee, industry professionals and Sharia scholars attended the events in large numbers. Mufti dr. Irshad Ahmed Aijaz praised the efforts of all stakeholders to transform the financial system in accordance with Sharia principles, constitutional requirements and the decision of the Federal Sharia Court.
The diagnostic reports, which cover key aspects of the development of Islamic finance in the non-banking sector, are expected to accelerate efforts for growth of Islamic capital markets, takaful industry and Islamic financial institutions. The reports are expected to create a favorable environment for the implementation of a strategic action plan and serve as a guideline for further research.
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