National Islamic Economic Conference: Leaders support ‘Sharia-compliant model’

KARACHI: At the third National Islamic Economic Conference 2025, leaders from government, finance, and religious institutions united in their support for transforming the country’s financial system into an interest-free, Sharia-compliant model.

The third NIEC 2025 titled “Towards the Islamic Digital Economy,” was organised by Saylani Welfare International Trust in collaboration with the National Islamic Economic Forum (NIEF) and Darul Uloom Memon.

Addressing the conference Governor Sindh Kamran Tessori praised the Prime Minister’s “Uraan Pakistan” initiative and emphasized the importance of Islamic banking, AI-driven innovation, and national resilience. With strong backing from scholars, the judiciary, and the State Bank, Pakistan is on track to become a global leader in the Islamic digital economy by 2027.

Governor Sindh, Kamran Khan Tessori, commended Prime Minister’s efforts under the “Uraan Pakistan” initiative to elevate the national economy. He stressed the importance of transitioning from a conventional to an interest-free Islamic financial system.

Tessori pointed out the need to embrace artificial intelligence (AI) to remain globally competitive, while acknowledging Saylani Welfare’s efforts in advancing AI education among youth.

Allama Raghib Hussain Naeemi stated that the Islamic Ideological Council has opposed the interest-based financial system from the very beginning and has already submitted its comprehensive report. The Federal Shariat Court has ruled for the complete implementation of the Islamic banking system, replacing the conventional banking system, by 2027. He expressed full support for the State Bank’s efforts in this regard.

The Council recommended that funds related to Hajj and Zakat should be managed under the Islamic banking system.

Highlighting the growing trend of e-commerce, he said it is rapidly becoming a popular trade method, necessitating a clear framework for such transactions.

He welcomed the establishment of the Crypto Council but stressed the need for discussion on the volatility of digital currencies. He emphasized that if the state’s leadership focuses its attention, Pakistan could soon transition to an interest-free banking system.

Allama Naeemi mentioned that the Shariat Court has already issued orders to eliminate interest, and the Islamic Ideological Council continues to provide guidance on Islamic banking. Since 2025, a trend toward digital economic growth has been observed, making it crucial to safeguard Hajj and Zakat funds in Islamic banks.

He also pointed out that the number of internet users in Pakistan has reached 170 million, making it the fifth largest in the world. However, he highlighted a lack of experts in this field. Speaking about the Crypto Council established in 2025, he noted that scholars have not yet addressed the critical discussions required on the subject.

Mufti Muneeb-ur-Rehman stated that according to the Shariat Court’s order, all banks must transition to the Islamic banking system by the end of 2027. Currently, banks have only two years, seven months and 11 days left to implement this, but there seems to be no significant activity in the government or banking sector regarding this transition.

He further criticized the government, saying it is itself involved in interest-based transactions in many areas. He called for conferences that not only raise awareness but also motivate and initiate concrete actions. He also praised the efforts of organisations like Saylani, the NIEF, and Darul Uloom Mehmoodabad in opposing the interest-based system.

Mufti Muneeb referred to the events of December 16, 1971, stating that the dagger India thrust into Pakistan’s heart has been countered effectively. He commended the sacrifices of the Pakistani Armed Forces, adding that their recent successes prove that with Allah’s help, Pakistan has defeated a much larger enemy. He emphasized that following Allah’s commandments in all aspects would lead to further divine assistance.

Maulana Bashir Farooqi, in his brief speech, stated that “eliminating the interest-based system by 2027 is essential. Interest is a war against Allah and His Messenger, and no one can succeed in such a war.” He said Saylani is collaborating with relevant institutions to promote the Islamic digital economy.

Head of Islamic Finance Department Securities Exchange Commission of Pakistan, Tariq Naseem, noted that Islamic fintech is resolving issues related to Islamic financing. He highlighted the need to provide facilities for the 7 million microfinance bank users who are currently unable to open bank accounts.

Faisal Bank’s President, Yousuf Hussain, spoke about the progress being made in promoting Islamic banking but acknowledged that several issues still need to be addressed.

Chairman of ABAD, Hasan Bakhshi, commended the efforts of the State Bank’s Governor in promoting Islamic banking. He revealed that 90% to 95% of investors and buyers in the construction industry are inclined towards Islamic banking, emphasizing the sector’s significant potential. He called for commercial banks to accelerate their shift toward Islamic banking.

The conference concluded with the signing of several Memorandums of Understanding (MOUs) between Saylani and various financial institutions to collaborate on promoting an Islamic economy.

Copyright Business Recorder, 2025