Ishaq Dar, the Federal Minister of Finance and Revenue, announced on Monday at the first Islamic Capital Markets (ICM) conference that National Savings will soon introduce Shariah-compliant products for investors.
Ishaq Dar, Pakistan’s finance minister, told the conference that his country had a strategic strategy in place to expand Islamic financing. “In addition, we have created a national financial inclusion strategy that covers many of the components needed to create Islamic financing,” he added.
Pakistan has a strategic plan in place to grow Islamic finance, said Mr. Ishaq Dar, Federal Minister for Finance & Revenue, who delivered keynote address at ICM Conference. We have a financial inclusion strategy that covers all the components needed to create Islamic financing. pic.twitter.com/QeEFPtkIUx
— SEC Pakistan (@SECPakistan) May 29, 2023
Shariah Compliant National Savings Program
He declared that National Savings would soon start offering investors Shariah-compliant alternatives. These products will satisfy the public’s demand for investments that adhere to Sharia law.
They will take the shape of 1, 3, and 5-year term accounts with distributions of profits made on a monthly, semi-annual, and end-to-maturity basis. He promised that more information on the development would be released soon.
Dar added that one of the few nations with a well-established regulatory framework for microfinance banks is Pakistan. “I must compliment SBP and SECP for doing a wonderful job in this regard,” he said.
According to the minister, the world’s largest financial markets provide convincing proof that Islamic banking has already gained traction in parallel with the international financial system and has the capacity to help solve the problems of eradicating extreme poverty and fostering shared wealth.
Dar commented, “According to the Islamic Finance Development Report 2022, there are 1,679 Islamic financial institutions, including 560 Islamic banks operating in 76 countries, with 17 percent YoY growth”. In Pakistan, Islamic finance saw growth of 29% in 2022, he continued.
To read our blog on “4 more AAOIFI Shariah Standards are adopted by SBP for the Islamic banking sector,” click here.
