ISLAMABAD, May 29 (Online): Finance Minister (FM) Ishaq Dar has said government is endeavoring to improve Islamic banking system as Islamic financing can help rein in poverty.
“we are endeavoring to stabilize national economy. we are improving Islamic banking system. Islamic financing can help rein in poverty. We can steer out country from all economic challenges in collaboration with all Muslim countries, he said this while addressing International Islamic Banking Conference (IIBC) here Monday.
He went on to say 21 percent banking system of Pakistan has turned into Islamic financing. A comprehensive system for distribution of zakat is in place in Pakistan. Islamic finance is the sector of largest growth in the world.
He held if there are such recommendations which could be brought into budget I would bring them at every cost.
He stressed that Islamic products will have to be given priority. But prices of Islamic products should not be more than market prices.
“I assure government will move to Islamic products on availability of supply. All will have to work together to fortify Islamic finance industry, he remarked.
Earlier he said some internal and external elements made open attempts to destabilize national economy. Imran put the country into default. The incumbent government has saved it.
He claimed during Imran regime the national economy was devastated. Because he signed harsh pledges with monetary institutions and he violated all the conditions of the agreements.
He observed the inflation has soared due to devaluation of currency. Government is aware of the difficulties facing the people. Every pledge made with the people will be delivered.
Government is working to evolve comprehensive strategy to bring price of dollar to its original level. In the coming days the price of US dollar will become Rs 250 from Rs 240 which will be its original value.
Later governor State Bank Jamil Ahmad said in his address the national economy has to be made free from interest till 2027. State Bank and SECP are jointly working on reforms for promotion of Islamic finance sector. Growth is improving due to Islamic capital market in connection with national economy.
He indicated the volume of Islamic capital market has reached 3 trillion dollars. Islamic banking rose by 24 percent in the country in Pakistan during the last 10 years.
He said national economy has to be freed from interest till 2027. Pakistan has issued sukuk bonds 2.8 trillion rupees. Committee is set up in state bank to convert government loan to Islamic sukuk.
Talks are underway for funding from capital market through Shariah compliance. The governments financial needs can be met through launch of sukuk.
He underlined Islamic banking market is developing by 24 percent since the last 10 years. Its share has risen to 20 percent in banking sector.
He pointed out that the size of corporate banks sector of country is very small. The Islamic market can be further developed through promotion of sukuks.
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