BAFL 53.19 Increased By ▲ 3.16 (6.32%)
BIPL 22.90 Increased By ▲ 0.49 (2.19%)
BOP 5.67 Increased By ▲ 0.25 (4.61%)
CNERGY 5.12 Increased By ▲ 0.07 (1.39%)
DFML 19.35 Increased By ▲ 0.17 (0.89%)
DGKC 80.54 Increased By ▲ 0.39 (0.49%)
FABL 33.11 Increased By ▲ 0.26 (0.79%)
FCCL 20.25 No Change ▼ 0.00 (0%)
FFL 10.48 Increased By ▲ 0.83 (8.6%)
GGL 13.61 Increased By ▲ 0.01 (0.07%)
HBL 129.52 Increased By ▲ 8.18 (6.74%)
HUBC 123.38 Increased By ▲ 0.88 (0.72%)
HUMNL 8.04 Increased By ▲ 0.04 (0.5%)
KEL 4.43 Increased By ▲ 0.46 (11.59%)
LOTCHEM 28.01 Decreased By ▼ -0.07 (-0.25%)
MLCF 42.71 Increased By ▲ 0.51 (1.21%)
OGDC 125.38 Increased By ▲ 4.05 (3.34%)
PAEL 21.33 Increased By ▲ 1.10 (5.44%)
PIBTL 6.11 Increased By ▲ 0.31 (5.34%)
PIOC 118.47 Increased By ▲ 2.57 (2.22%)
PPL 113.85 Increased By ▲ 3.10 (2.8%)
PRL 31.80 Increased By ▲ 2.22 (7.51%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 69.44 Increased By ▲ 0.41 (0.59%)
SSGC 13.76 Increased By ▲ 0.06 (0.44%)
TELE 9.16 Increased By ▲ 0.41 (4.69%)
TPLP 14.79 Increased By ▲ 0.12 (0.82%)
TRG 92.45 Increased By ▲ 1.15 (1.26%)
UNITY 27.47 Increased By ▲ 0.22 (0.81%)
WTL 1.67 Increased By ▲ 0.04 (2.45%)
BR100 6,815 Increased By 167.1 (2.51%)
BR30 24,245 Increased By 677 (2.87%)
KSE100 66,224 Increased By 1505.6 (2.33%)
KSE30 22,123 Increased By 529.1 (2.45%)

KARACHI: As Pakistan is grappled with economic challenges, Finance Minister Ishaq Dar Thursday approved a proposal to raise an interest-free $ 2 billion from overseas Pakistanis to alleviate the ongoing foreign exchange crisis.

Also, the federal minister directed the State Bank of Pakistan (SBP) to initiate the process for the scheme offered by the Saylani Welfare International Trust (SWIT).

The proposal was presented by Moulana Basheer Farooqi, Chairman of SWIT at the National Islamic Economic Forum Conference-2023 (NIEFC) jointly organized by SWIT and Darul Uloom Memon at a hotel here.

The Finance Minister addressed the event as the chief guest via video link. He hoped that the proposal would be implemented in a transparent, well-regulated, and structured manner.

Market share of Islamic banking sector tops 20pc by Sept-end

Dar offered his assistance to act as a facilitator between the SBP and concerned charities that wanted to collect donations for serving the national economy.

“We want to make an appeal to the overseas Pakistanis that they should deposit dollars in the SBP for a minimum five-year period. This amount may be utilized to clear thousands of import containers, currently stuck at ports due to letter of credit (LC) issues. We will be able to raise at least $2 billion within a few days,” he added.

Farooqi said: “SWIT will partner with like-minded charities to approach concerned philanthropists within and outside the country for raising at least US $ 2 billion for the State Bank of Pakistan to facilitate importers who have been facing serious hardships due to fast depleting foreign exchange reserves.”

He told the audience that he had planned to team up with top charities in Pakistan including Akhuwat, Citizens Foundation and Indus Hospital to raise funds from concerned donors in Pakistan to facilitate traders.

He recalled that Pakistan came into existence in 1947 in the name of Islam as its banking and financial system should fully conform to Islamic principles.

Adoption of an interest-free banking system would be highly beneficial to achieve this cause.

The minister has assured the fullest support of the present government in efforts to make the banking system of Pakistan interest-free and transform it according to Islamic principles in five years’ time as per the deadline for the purpose given by the Federal Shariat Court.

Dar told an audience at the conference that the cause of implementing Islamic principles in the banking sector was very close to his heart as he sincerely wished that banking systems became interest-free in Pakistan. “As a sincere follower of the teachings of Islam it is my earnest desire to get rid of the interest-based financial system in our country,” said the Finance Minister.

He said that brainstorming sessions like NIEFC with participation by leading financial experts and Islamic scholars went a long way in facilitating the government to achieve the cause of reforming the banking system as per the guiding principles of Islam.

He said that with the involvement of every concerned stakeholder including noted religious scholars, financial, and economic experts Pakistan would easily fulfill the task of making the banking system interest-free and Shariah-compliant within five years.

He said that in his previous tenure as the Finance minister he had introduced a number of initiatives to speed up the process of adoption of Islamic principles by the banking system.

The Finance Minister said that in the past term, he had offered two per cent tax exemption to the listed manufacturing companies that duly adopted the Islamic banking system. He said that as soon as he had assumed the Finance Ministry he implemented his thinking by advising the State Bank of Pakistan and the National Bank of Pakistan to withdraw their appeals against the judgment of the Shariat Court to eliminate interest from the banking system.

Dar said that a steering committee had been formed with all the relevant stakeholders and he being its patron to work on the cause of transforming the banking system as per the Shariah principles.

He said the donations collected by his charitable drive would go a long way to generate employment opportunities for the masses in the country.

He recalled that Pakistan had come into existence in 1947 in the name of Islam as its banking and financial system should fully conform to Islamic principles.

He said that the adoption of an interest-free banking system would be highly beneficial to achieve this cause.

Noted religious scholar Mufti Muneeb-ur-Rehman, said that apart from getting rid of the interest-based banking system the tax mechanism should also be reformed to end the exploitation of the poor people and labourers.

He said that a 17 percent general sales tax paid on items of everyday use was highly exploitative for the consumers belonging to low-income groups, as this tax rate should be reduced to seven percent to end this economic exploitation.

He said that a maximum number of people belonging to the affluent classes should be included in the tax net to increase the revenue income of the country.

He appealed to the wealthy people to come forward and donate generously to lessen the miseries of their fellow countrymen belonging to the downtrodden communities.

Ashfaq Tola, State Minister for Reforms and Resource Mobilization Commission, said the present government was fully serious to wage Jihad against the interest-based financial and banking system in the country to end the exploitation of the countrymen.

State Bank of Pakistan Executive Director Syed Samar Hasnain held out the firm assurance on behalf of the SBP to implement an interest-free banking system in Pakistan as per the directives of the Shariat Court. He said that Pakistan required a large number of trained banking professionals to make all banks Shariah-compliant.

He told the audience that Pakistan had six fully Islamic banks while 16 banks had Islamic banking branches functioning in 130 districts

He assured the audience that the steering committee formed by the government would make quick progress to implement Shariah-compliant banking system in the country.

Copyright Business Recorder, 2023


Comments are closed.

KhanRA Feb 03, 2023 06:43am
Is this a joke? Who will be ignorant enough to trust this incompetent FM with their own hard earned money? A fool could fall for this desperate move.
thumb_up Recommended (0)
Shani Feb 03, 2023 08:23am
Sharifs and Zardari taken away voting rights from overseas Pakistani. Now asking for deposit dollars . Property and assets of overseas Pakistani are not safe in country because of tanged law and land mafia.
thumb_up Recommended (0)
Amir Feb 03, 2023 08:35am
No charity from overseas Pakistanis! They know Dar well!
thumb_up Recommended (0)
Shani Feb 03, 2023 08:58am
Why not these big charities houes asking PDM and Dar to give voting rights to Overseas Pakistani. All donations and deposits must link to this condition.
thumb_up Recommended (0)
M. Hassan Feb 03, 2023 10:25am
This man does not lose any opportunity to prove himself a stupid.
thumb_up Recommended (0)
KhanRA Feb 03, 2023 10:40am
@Shani, indeed. Let us not forget Dar created this problem, and now he is asking for charity.
thumb_up Recommended (0)
Tariq Feb 03, 2023 11:34am
2b $ alone NS can deposit from UK… as interest free n as charity
thumb_up Recommended (0)
MohammadShoaib Feb 03, 2023 12:12pm
Scrapping last loots before leaving the country again :) Same script and same looters being implanted by patriotic establishment for last 75 years
thumb_up Recommended (0)
Anonymous Feb 03, 2023 12:55pm
Bring back dollars from swiss bank
thumb_up Recommended (0)
Dr K. Azeem Feb 03, 2023 02:12pm
Look who is talking about Islamic principle of interest-free banking !! A thief, a corrupt, a deserted Finance Minister whose reputation is widely known even in the Western media.
thumb_up Recommended (0)
KK Feb 03, 2023 04:11pm
Lets put aside the fact that Islamic Banking practiced in its current form in Pakistan, is a total farce. But Mr. Dar is using the guise of Islamic Banking to stir the religious inclined people to raise USD 2 bn, interest free. Who in the right frame of mind will give donate free money to this bunch of incompetent crooks, who are covered in corruption from head to toe. Why not Mr. Dar asks his boss, the senior Sharif, to come forward and part with USD 2 bn from his ill gotten wealth rather than asking people.
thumb_up Recommended (0)
TimeToMovveOn Feb 03, 2023 08:42pm
Tell me that this isn't a joke. The FM asking charities to raise money for Pakistan. Is that not his job to shore up the finances? He shafted Miftha to come to Pak and totally screwed up the economy.
thumb_up Recommended (0)
Chandio Feb 04, 2023 11:25pm
@Shani, Like of MR and his sponsors.
thumb_up Recommended (0)
Chandio Feb 04, 2023 11:26pm
@M. Hassan, indeed, a stupid is what stupid does.
thumb_up Recommended (0)
Chandio Feb 04, 2023 11:29pm
@Anonymous, According to various reports and books published in the West Shariffs, Zardari & Crooks & Corrupt Inc Inc have stolen more than $200 billion during past 30 years! Why not bring that money back before these dudes expire and the shrewd banks seize that money!
thumb_up Recommended (0)
Chandio Feb 04, 2023 11:30pm
@TimeToMovveOn, This shows the competence level and mindset of this guy and people who installed him and his clan.
thumb_up Recommended (0)
Tinwala Feb 04, 2023 11:32pm
@KK, Dar is at the bottom of the dumb scale, a shop keeper in Bohri Bazar Karachi has more brains than this crook.
thumb_up Recommended (0)
Ehsan Feb 04, 2023 11:55pm
How can he approve a plan. Expats don't trust this man who stole so much and came and released his assets after he came back to Pakistan.
thumb_up Recommended (0)

Dar approves proposal to raise $2bn from expats

Gaza war having ‘catastrophic’ health impact: WHO chief

Yemen rebels threaten Israel-bound Red Sea ships

Policeman martyred, two injured in blast in Balochistan’s Khuzdar

Army chief leaves for US on first official visit: ISPR

Bilawal says ‘was told’ KP CM has already been decided

COP28 pledges so far not enough to limit warming to 1.5C: IEA

Abrar Ahmed ruled out of first Australia Test with knee injury

Azan’s century helps Pakistan U19 beat India U19 by eight wickets

Cleanliness drive started in Lahore to ‘combat smog’: Naqvi

Saudi bourse gains on rising oil prices; Qatar falls