In recognition of its efforts for the promotion of Islamic Financingglobally, Pakistan has been awarded the Global Islamic Leadership Award.
The award was received by President Arif Alvi at the 10th Global IslamicFinance Awards Ceremony in Islamabad on Monday. President Alvi in hisaddress highlighted that Islamic Financing is increasing around the worldbut its full potential is yet to be realized.
The President appreciated the fact that 17 percent of Pakistan’s bankingsector has converted to the Shariah-Compliant instruments. He pointed outthat the Sukuk bond was recently floated in the energy sector.
Alvi lauded the role of the State Bank of Pakistan (SBP) and the Securities& Exchange Commission of Pakistan (SECP) in the promotion of Islamicbanking.
The Islamic Banking industry has continued its upward trajectory inPakistan as the market share of the IBI’s rose to 15.3 percent witnessing ajump of one percentage point from 15.2 percent during the year till June2020.
As per the SBP Islamic Banking Bulletin, during the quarter under review(April-June 2020), the asset base of the Islamic banking industry (IBI)grew by 8.1 percent to reach to Rs 3,633 billion while deposits of IBIstood at Rs 2,946 billion depicting quarterly growth of 9.5 percent; YoYgrowth was recorded 21.4 percent and 22 percent for assets and deposits,respectively.
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Meanwhile, in his remarks on the occasion, Governor SBP Reza Baqirexpressed the commitment to promote Islamic financing and take it to thelevels never seen before. He said there is a Shariah Advisory Committeecomprising three schools of thought, Shariah boards, and other mechanismsto ensure compliance with Shariah principles in Islamic financing.
The central bank Governor said that SBP is also playing its role increating awareness amongst the people about Islamic financing.
SBP was also awarded the Best Central Bank of the Year award for promotingIslamic banking.
