BR100 Increased By (0.01%)
BR30 Increased By (0.53%)
KSE100 Increased By (0.28%)
KSE30 Increased By (0.29%)
AGHA 6.38 Increased By ▲ 0.06 (0.95%)
BECO 4.35 Increased By ▲ 0.08 (1.87%)
BML 62.55 Increased By ▲ 0.10 (0.16%)
BOP 31.39 Increased By ▲ 0.16 (0.51%)
CNERGY 11.73 Increased By ▲ 0.14 (1.21%)
CSIL 5.91 Increased By ▲ 0.19 (3.32%)
FCCL 61.71 Increased By ▲ 0.17 (0.28%)
FFL 14.79 Decreased By ▼ -0.23 (-1.53%)
FNEL 1.24 Increased By ▲ 0.01 (0.81%)
KEL 6.32 Increased By ▲ 0.06 (0.96%)
KOSM 5.90 Increased By ▲ 0.34 (6.12%)
LOTCHEM 24.69 Increased By ▲ 0.01 (0.04%)
MLCF 103.93 Decreased By ▼ -0.15 (-0.14%)
NBP 173.32 Decreased By ▼ -1.96 (-1.12%)
NCPL 51.83 Decreased By ▼ -0.94 (-1.78%)
NPL 54.03 Decreased By ▼ -0.09 (-0.17%)
OGDC 315.87 Increased By ▲ 2.48 (0.79%)
PACE 9.26 Increased By ▲ 0.06 (0.65%)
PAEL 35.58 Decreased By ▼ -0.22 (-0.61%)
PIBTL 13.66 Increased By ▲ 0.19 (1.41%)
PPL 226.07 Increased By ▲ 4.26 (1.92%)
PRL 80.28 Increased By ▲ 1.20 (1.52%)
PTC 46.64 Decreased By ▼ -0.21 (-0.45%)
SSGC 23.82 Decreased By ▼ -0.05 (-0.21%)
TBL 9.24 Decreased By ▼ -0.07 (-0.75%)
TELE 7.55 Increased By ▲ 0.16 (2.17%)
TPL 24.54 Decreased By ▼ -0.57 (-2.27%)
TPLP 12.99 Increased By ▲ 0.48 (3.84%)
TREET 25.98 Decreased By ▼ -0.27 (-1.03%)
TRG 53.33 Decreased By ▼ -0.11 (-0.21%)

ISLAMABAD: Chairman Securities and Exchange Commission of Pakistan (SECP) Aamir Khan has suggested tax incentive for companies whose financing needs are principally met through capital market Islamic instruments in budget (2022-23).

He made this suggestion in his keynote address at World Islamic Finance Forum’s “Development of Islamic Finance Ecosystem for Global Prosperity” conference, organized by Centre of Excellence in Islamic Finance (CEIF) on Monday.

Aamir Khan also recommended the tax incentive would be a preferred approach than to revive the erstwhile 2% flat incentive.

He also suggested establishment of a high-level Steering Committee tasked with charting an impactful roadmap for the future, encompassing all touch points of Islamic finance ecosystem, to promote Islamic finance in the country.

It is notable here that a similar committee was formulated in 2013 for promotion of Islamic banking in Pakistan.

He noted that ‘protection, justice, fairness and societal well-being’ are the key goals of Islamic finance, and SECP has been focused on promotion of Islamic financing with all these goals in sight.

He shared some of the milestones achieved by SECP in line of Islamic financing, including the listing of PHL energy Sukuk; launch of the first-ever Shariah compliant ETF; approval of the first-ever Shariah compliant developmental REIT; revamping of Commodity Murabaha platform at PMEX; licensing of 2 Shariah-compliant Housing Finance companies; and disbursement of over 43,000 subsidized loans by one Islamic NBMFC.

Emphasizing the role of financial sector regulators in promoting a culture of innovation and entrepreneurship in the Islamic finance space, he shared the example of SECP’s regulatory sandbox that encourages young entrepreneurs and nascent startups, to come up with creative solutions & products. He proposed a similar model exclusively for Islamic finance, through collaboration of all relevant regulators.

SECP Chairman also said that despite these “isolated successes”, structural gaps still exist in the industry, and warrant a concerted national level thrust to understand and address the complete spectrum of financial needs of the population.

He stressed on harnessing the role capital markets, NBFCs and insurance sectors towards the development and expansion of Islamic financial ecosystem.

Shedding more light on the structural deficiencies, Khan said that the financial landscape in Pakistan remains bank-centric, while the current policies focused on financial inclusion also remain rather credit-centric.

This means that products and solutions like long-term savings, investments, pension, insurance protection, private equity, etc., are not getting adequate attention. Finally, the implementation of inclusion efforts has also mostly stayed limited to the urban centres, except some microfinance lending activity.

Copyright Business Recorder, 2022

Comments

Comments are closed for this article.