The Islamic banking and finance industry is rapidly growing in Pakistan, and the IBA Center for Excellence in Islamic Finance (IBA-CEIF) recently conducted a one-day capacity building session for media professionals to provide insights into this expanding market.
During the session, journalists and media professionals learned about the core principles and practices of Islamic banking and finance, as well as its growing importance in the global financial landscape. The event was led by Ahmed Ali Siddiqui, Director IBA-CEIF, who discussed the basic working model and differences between Islamic and conventional banking.
Siddiqui highlighted the growth trend of the local Islamic banking industry, which now accounts for over 20 percent of the banking market, as well as the global landscape of Islamic finance, which has grown to approximately $3 trillion. If all stakeholders combine their efforts and provide a level playing field related to regulation and legal framework to the industry, along with required HR training and mass awareness campaigns, then aggressive growth is expected.
The role of the State Bank of Pakistan (SBP) in promoting Islamic banking was discussed by Islam Ahmed, Ex. Senior Joint Director, SBP, who shared the regulatory and Shariah governance steps in Pakistan to convert the banking system to Islamic principles. Faisal Shaikh, Head of Islamic Banking, also discussed the successful conversion journey of Faysal Bank to a full-fledged Islamic bank with over 200 branches.
By 2027, Islamic banking assets have the potential to grow up to Rs. 40 trillion and deposits are expected to reach Rs. 33 trillion in Pakistan. The participants expressed their desire to learn more about Islamic finance and its role in promoting economic development and social welfare.
In conclusion, the growing market of Islamic banking and finance in Pakistan is becoming increasingly important, and media professionals have an important role to play in disseminating information and raising awareness about this industry.