ISLAMABAD: Finance Minister Senator Ishaq Dar has formed four sub-committees for promotion and facilitation of Islamic banking in the country.
The Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan will chair the sub-committee on taxation. This sub-committee will have representatives of banks, finance division, shariah scholars, while the heads of revenue authorities of all provinces will also be among the body.
The sub-committee on legal and regulatory framework will be chaired by the Governor State Bank of Pakistan, and has representation of various commercial banks, shariah scholars and the ministries of Law and Finance.
The committee will advise FBR to provide tax neutrality for Islamic Financial Institutions and review tax related matters of Islamic banking subsidiaries of conventional banks and make it a competitive business model.
The sub-committee on capital market will be chaired by the chairman Securities and Exchange Commission of Pakistan. It has representation of FPCCI, banks, shariah scholar, Pakistan Stock Exchange and the finance division.
The committee will coordinate terms and conditions of Shariah compliant instruments issued by NBFC, notified entities and modarabas, issuance of retail sukuk, introduce innovative financial products like Real Estate Investment Trust, and securitisation on Islamic basis. The SBP and SECP will develop framework for Islamic banking institutions to enter into private equity business.
The sub-committee on awareness, training and capacity building will be chaired by the Deputy Governor SBP who is also the convener of all the sub-committees. It has representation of National Institute of Banking and Finance (NIBAF), SECP, banks, finance division and private universities such as IBA, LUMS and IMS.
