Unilateral, bilateral promise: SBP adopts 'AAOIFI' Shariah Standard No 49

KARACHI: In order to standardize and harmonize Shariah practices in Islamic Banking Institutions (IBIs) of Pakistan, the State Bank of Pakistan (SBP) has announced adoption of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shariah Standard No 49 for Unilateral and Bilateral Promise.

According to the SBP, this adoption will be with immediate effect subject to some clarifications or amendments. The adoption of the standards is in addition to current regulations, other instructions and directives issued by the SBP from time to time.

All Islamic banks, Islamic banking subsidiaries and all conventional banks having Islamic banking branches will be required to adopt this immediately. The failure to comply with these instructions may invoke penal action under the provisions of Banking Companies Ordinance 1962, the SBP warned.

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