Pakistan has ranked 8th in the Global Islamic Economic Indicator list withthe sustainable growth of Islamic institutions in the financial sector andeconomy of the country.
A report on The State of Global Islamic Economy, launched at the Instituteof Business Administration (IBA) Karachi Center for Excellence in IslamicFinance (CEIF) with the theme ‘thriving in uncertainty,’ revealed this.
IBA held the launch event in collaboration with the Halal DevelopmentCouncil (HDC) Pakistan and in partnership with Dinar Standard, a US-basedresearch and advisory firm. This is the first time that this global reporthas been launched in Pakistan.——————————
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This year’s report estimates that Muslims world-wide spent US $2.02trillion in 2019 on halal lifestyle-related food, pharmaceuticals,cosmetics, modest fashion, travel, and media sectors. The report revealsthat while this spending reflects 3.2 percent year-on-year growth, Muslimspending in 2020 is forecast to contract by 8 percent due to the pandemic.
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However, spending, excluding travel, is forecast to rebound by the end of2021 and is slated to reach US $2.3 trillion by 2024, at a cumulativeannual growth rate (CAGR) of 3.1 percent. Islamic finance assets areestimated to have reached US $2.88 trillion in 2019 and are estimated toremain at the same level in 2020. Pakistan’s domestics Muslim consumerexpenditure on halal relevant sectors was estimated at $120 billion in2019, which is the 6th highest globally.
The SGIE report also highlights the social impact developments of Islamiceconomies in addressing the United Nations’ Sustainable Development Goals,including initiatives addressing the exacerbated poverty and food securitycrisis from the COVID-19 pandemic. Malaysia leads the report’s GlobalIslamic Economy Indicator ranking while Pakistan has been ranked 8th out of81 countries.
