Sub-committees Formed to Encourage Islamic Banking

Islamabad – Finance Minister Ishaq Dar stated that the government is actively working through its policies to encourage Islamic Banking in Pakistan.

With regards to this, the finance minister gave notifications to four sub-committees for encouraging and assistance of shariah-compliant banking in the country. Not just this, the sub-committees’ terms of reference were also accepted and issued.

The Governor of State Bank of Pakistan will chair the Sub-Committee on Legal & Regulatory Framework. It has significance of different commercial banks, Shariah scholars and Ministries of Law and Finance.

The Chairman of Federal Board of Revenue will chair the Sub-Committee on Taxation. It will represent banks, Shariah Scholars and Finance Division including the heads of revenue authorities from all provinces. This committee aims to guide FBR to give tax neutrality for Shariah Compliant Institutions and evaluate matters related to Islamic Banking affiliates of conventional banks.

The Chairman of Securities & Exchange will chair Sub-Committee on Capital Market. The chair has representation of FPCCI, banks, Pakistan Stock Exchange, Shariah scholars and Finance Division.

The Committee will complement terms and conditions of Islamic finance instruments given by NBFC, Modarbas, retail sukuk issuance, introduction of Real Estate Investment Trust etc. Not just this, SECP and SBP will give framework for shariah compliant institutions to move to private equity businesses.

Moreover, the Deputy Governor SBP will chair Sub-Committee on Awareness, Training and Capacity Building. This chair has characterization of NIBAF, IBA, SECP, LUMS, IMS and Finance Division.

The aim of this committee is to endorse culture of Islamic Finance in the research and development.

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