Economic growth: SBP official delineates Islamic finance framework

KARACHI: Samar Hasnain, Executive Director, State Bank of Pakistan (SBP) has said Islamic economic and finance is a comprehensive framework that offers a distinctive approach to fostering ethical, sustainable and socially responsible economic development.

Addressing a 13th Islamic Banking & Finance Conference organized by the Professionals Network here, Samar highlighted the transformative potential of Islamic economics and finance and said that by integrating financial practices with core moral and social values, Islamic finance stands poised to drive impactful and meaningful change in an increasingly complex and interconnected global landscape.

The titled of the conference was “From Practice to Impact: Aligning Islamic Economics & Finance with Global Challenges, ”and Jawad Majid Khan President & CEO Bank Makramah, Faisal Iqbal Head of SME & Supply Chain Financing Meezan Bank, Ateeq Ur Rehman Economic & Financial Analyst and Mehmood Tareen CEO The Professionals Network were among leading speakers.

Samar Hasnain said that the key challenges climate risk and financial inclusion, fostering innovation and ultimately achieving sustainability. Addressing these issues demands specialized expertise and significant resources, he added.

The solution lies in forging strategic partnerships and fostering strong collaboration among stakeholders to develop innovative solutions. These efforts must align with the principles of Maqasid al-Shariah, paving the way for a sustainable and equitable future for all, he said.

Jawad Majid Khan emphasized on Islamization of Pakistan economy is the way forward as it can actually address all the major fundamental issues being faced for decades that include converting informal to formal economy and documentation, tax collection verses very high expenditures, unproductive vicious debt circle, lowest gross national saving rates an, lower GDP growth rate, which is dependent heavily on imports and a very unattractive climate for investments etc.

Faisal Iqbal in his speech said the critical role of SMEs in achieving Maqasid e Shariah and vital contribution to Economy as a whole. With conversion of all conventional banks into IBs in next 3 years and Regulator’s declaring SME and Agri as priority sectors for lending, IBs are poised to contribute significantly for SMEs promotion with introduction of exclusive SME business vertical, Digital Supply Chain Finance and Capacity building being carried out by the Banking Industry, he added.

Ateeq ur Rehman said the growth of Pakistan’s economy and Islamic banking or finance always goes together. The contribution of Islamic Banking has to be immense for the expansion of our trade, he added.

Copyright Business Recorder, 2024