KARACHI: The State Bank of Pakistan (SBP) has adopted Shariah Standard No. 30 on Monetization (Tawarruq), issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
The adoption takes immediate effect, subject to the clarifications and amendments listed in Appendix A.
The move aims to strengthen Shariah compliance and bring Islamic banking practices across Pakistan into greater alignment, according to an SBP notice.
In addition, the central bank has issued guidelines on applying Ḥajah (need) to Tawarruq-based transactions. These guidelines appear in Annexure I and supplement the SBP’s existing regulations, instructions and directives.
The SBP has warned that banks that fail to follow these instructions may face penalties under the relevant provisions of the Banking Companies Ordinance, 1962.
