Islamic banking: FPCCI, SBP BSC organise awareness session

LAHORE: An important awareness session on Islamic banking was organized jointly by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the State Bank of Pakistan (SBP) Banking Services Corporation in Lahore.

The session was attended extensively by senior officials of the State Bank of Pakistan, representatives of chambers of commerce, trade associations, and the business community.

Addressing the ceremony, Zaki Ejaz, Vice President of the Federation of Pakistan Chambers of Commerce and Industry, stated that from January 1, 2028, a completely Shariah-compliant Islamic banking system is being implemented in Pakistan while conventional banking will be gradually phased out. This transformation will have profound impacts on industry, trade, and business activities, therefore timely awareness and guidance for the business community is extremely necessary.

The Vice President of the Federation of Pakistan Chambers of Commerce and Industry expressed gratitude to the Governor State Bank and the Monetary Policy Committee, noting that in June 2023 the interest rate was at its highest level of 22 percent, which severely affected business activities. However, as a result of the State Bank’s wise policies, the interest rate gradually decreased to 11 percent in May 2025 and further reduced to 10.5 percent on December 15, 2025, which is a commendable progress.

Sarfraz Ahmad Nadeem, Senior Deputy Chief Manager of the State Bank of Pakistan Banking Services Corporation Lahore, said in his address that the country had reached the brink of economic disaster and the threat of default was also present, but now we have emerged from the emergency situation and our exports have now reached their highest level. Such consultative sessions should be held more frequently, and concerns about Islamic banking are diminishing with time.

Mufti Syed Sabir Hussain, Resident Shariah Board Member of MCB Bank, said that at present rapid progress is underway in the country regarding Islamic banking, with six banks across the country being completely Islamic. If all stakeholders are on the same page, we will have an interest-free economy in 2028. Islam has a complete economic system, and people’s money is being misused in conventional banking.

Copyright Business Recorder, 2025