ISLAMABAD: Federal Minister for Finance Ishaq Dar reviewed the pace of work of the steering Committee constitution to ensure Promotion of Islamic Banking and was informed about the pressing issues faced by Islamic banks.
While co-chairing the 6th meeting of the Steering Committee for Promotion of Islamic Banking here at the Finance Ministry, Dar promised to provide Islamic banks a level play ground to compete with conventional banks.
According to a statement of the Finance Ministry, the minister said, “When Euro bond issue was oversubscribed more than 14 times, the government could have taken $5 billion but “We only took up $2 billion so that additional financing could be done by issuing Sukuk, the Islamic mode of financing.”
He acknowledged that Islamic banking was growing globally and noticed the keen interest of countries such as the UK which want to make London as the hub of Islamic finance.
He recalled that when he attended the Global Islamic Banking Forum in London with Prime Minister Nawaz Sharif, British Prime Minister David Cameron announced the issuance of sovereign Sukuk for the UK.
The Finance Minister noticed that in Pakistan Islamic banks had high level of liquidity with lack of investment opportunities in providing finance to government on the same level as the conventional banks.
He reviewed various proposals which had been developed by the Committee members and SBP and promised to use these to meet further needs of the government.
He advised Secretary Finance to make use of this mode to meet Government needs.
He informed the meeting that the country had made significant improvement in economic achievements which have been acknowledged by international financial authorities.
However, current political upheaval has overshadowed these. Looking at the rebound of the stock market, he was optimistic that as soon as the current political situation is improved, the economic recovery will get back on track.
The Finance Minister appreciated that the Steering Committee is working through a number of sub-committees on Islamic Capital Markets, Hedging, and creation of Stock Exchange Islamic Companies’ Index.
The Committee is to submit its report at the end of the year.
The Committee was constituted and notified by the Government of Pakistan in December 2013 to develop Islamic banking and look into various shariah, regulatory and taxation related issues.
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