Pakistan’s Finance Minister Wants to End the Interest-Based System

The government’s dedication to advertising Islamic finance and doing away with Pakistan’s interest-based gadget has been reaffirmed through Finance Minister Ishaq Dar.

A high-level, three-member committee has been shaped to layout the Islamicization of Pakistan’s economic system, in accordance to Dar, who spoke on Thursday at the “National Islamic Economic Forum’s convention on Roadmap for Islamization of the Economy.” The committee is chaired by means of the Governor of the State Bank of Pakistan (SBP).

He said, “The interest-based device will be eradicated from Pakistan as quickly as feasible. I will be intently looking at this committee.”

Dar concept lower back to his preceding function as finance director, when his administration at the start started out to put in force a number of insurance policies to enhance Islamic finance in the nation. A high-level guidance crew made up of all vital stakeholders, consisting of the Ministry of Finance, the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), and Shariah specialists used to be one of the acts completed in this regard, he said.

“At that time, Meezan Bank used to be the solely Islamic financial institution we had, and it had solely a hundred branches. More than 1,000 branches exist now. Faysal Bank has superior extensively in this place as well, he continued.

The finance minister additionally noted the sharp upward jostle in deposits with Islamic banks. This indicates that the five-year cut-off date set via the Federal Shariat Court (FSC) to convert the modern-day economic device may additionally be met, he added, however he additionally counseled that Sharia-compliant banking will be a foremost problem.

In the meantime, Dar berated his predecessors, claiming that their negative administration and misgovernance have been to blame for the modern-day problems, which include as developing inflation, delays with Letters of Credit (LCs), and the monetary downturn.

Written by Aly Bukshi

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