Islamabad/Karachi – Pakistan’s Federal Minister for Finance and Revenue, Ishaq Dar, addressed the inaugural Islamic Capital Markets (ICM) Conference, where he emphasized the country’s comprehensive strategic plan to promote the growth of Islamic finance. However, Dar urged financial institutions, including banks, to ensure fairness and transparency in implementing the plan.
The conference, jointly hosted by the Securities and Exchange Commission of Pakistan (SECP) and the Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI), brought together industry experts and stakeholders to discuss the development of Islamic finance in Pakistan. Dar highlighted the importance of a financial inclusion strategy that encompasses all necessary components for Islamic financing.
Dar emphasized the need for fair and competitive pricing to make Islamic finance products a preferred choice for raising funds. He also stressed the development of the secondary market to reduce reliance on multilateral donors and advocated for launching Islamic financial products in this sector. Dar expressed confidence that the Islamic financial system has the potential to surpass the conventional financial system with sustained efforts.
During the conference, Sheikh Ebrahim Bin Khalifa Al Khalifa, Chairman of the Board of Trustees for AAOIFI, highlighted the principles of Islamic capital markets that foster economic development, sustainable growth, poverty alleviation, and community well-being. AAOIFI pledged its full support to improve the implementation of AAOIFI standards in Pakistan’s Islamic finance industry and capital market.
The event witnessed the participation of major industry players and organizations such as the Asian Development Bank (ADB), Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company (CDC), and Almeezan Investments. The signing of an MoU between AAOIFI and the SECP further strengthens the collaboration to launch Sharia-compliant products in Pakistan.
SECP Chairman Akif Saeed outlined the objective of promoting the Islamic capital market within the next two years. Saeed highlighted the interest from companies and financial institutions in launching Islamic services and products, emphasizing the potential of Sukuk issuance to accelerate the development of the Islamic financial system. He also mentioned ongoing reforms, including the establishment of a Regulatory Sandbox with a dedicated window for Islamic products.
Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, reiterated the commitment to transforming the financial sector into a Shariah-compliant system by 2027. Ahmed acknowledged the significant growth of Islamic banking in Pakistan and highlighted the need to address gaps in institutional, legal, and regulatory frameworks. He emphasized the importance of developing an enabling environment for a robust Islamic corporate debt market and called for efforts in investor education and embracing Islamic fintech and digital finance.
The conference concluded with a consensus among participants on the necessity of a strategic development plan for the organized growth of Islamic finance. Collaboration among regulators, financial institutions, industry players, and Shariah scholars was deemed essential for standardizing Islamic financial contracts and simplifying processes. The event aimed to define the future direction of Islamic capital markets in Pakistan, with a focus on innovation, growth, and transformation.