KARACHI: The State Bank of Pakistan (SBP) on Wednesday announced the adoption of the “Accounting and Auditing Organisation for Islamic Financial Institutions” (AAOIFI) Shariah Standards for mortgage and investment.
According to SBP, with a view to further strengthen Shariah compliance framework and harmonise the Shariah practices in Islamic banking industry, the AAOIFI Shariah Standards No. 15 (Ju’alah), No. 39 (Mortgage and its Contemporary Applications) and No. 46 (Al-Wakalah Bi Al-Istithmar (Investment Agency) have been adopted with immediate effect.
These Shariah Standards are applicable with the clarifications and amendments by the SBP. The adoption of the Standards is in addition to current regulations, other instructions and directives issued by SBP from time to time.
SBP has warned that the failure to comply with these instructions may invoke penal action under the provisions of Banking Companies Ordinance 1962.
Copyright Business Recorder, 2023