Pakistan Emerging As A Major Player in Islamic Finance

According to a yearly Global Islamic Finance Report in the UK, Pakistan’s growth rate in the industry was at 30% cumulative over the course of 5 years. The Report ranks over 50 countries across the world according to their position in the Islamic financial services industry.

This was above average global growth rate of Islamic banking and finance and if the trend continues, Pakistan’s Islamic banking assets will reach a value of $17.6 billion by 2017.

Second Largest Market for Islamic Banking

State Bank of Pakistan in compliance with the trend, seeks to double the number of Islamic banking branches from their current number which stands at around 1200. It is also aiming to increase the market share of Shariah-compliant banking from 10% to 15% before 2020. Pakistan is the second largest market for the Islamic banking industry.

Islamic financial services industry of Pakistan is housing microfinance banks, modaraba (Islamic asset management), Islamic mutual funds, takaful companies and Islamic Real Estate Investement Trusts.

CEO of First Habib Modaraba, Muhammad Shoaid Ibrahim says,

The branch network of Islamic banks is continuously expanding throughout the country at a fast pace and catering to the demand for Shariah-compliant banking products. The State Bank of Pakistan has played a leading role in further promoting and developing Islamic banking within the country on sound footings. In particular, Islamic mutual funds, modaraba and takaful companies are growing very well and are contributing to the development of Islamic finance in the country.

Microfinancing has also been on the rise in Pakistan as a lot of Pakistani households are taking interest-free loans based on Islamic law from microfinance institutions. Majority of the clients were women.

Infrastructure Financing via Islamic Finance Services

Pakistani banks arranged a ten year Islamic sukuk worth $955 million to finance the construction of a hydroelectric power plant, this was the biggest energy deal ever using Islamic financing in Pakistan.

Finance Minister Ishaq Dar says that Pakistan wants to make Islamic finance the first choice for infrastructure and long-term financing needs and also wants to shift 40% of its debt financing to Islamic sources of finance. This is also for infrastructure projects worth $45 billion which were agreed upon by Pakistan and China’s government for the China-Pakistan Economic Corridor.

Via Gulf Times

A techie, gamer, and Senior Editor at ProPakistani.

  • Islamic banking in Pakistan is all cheat. They are offering lowest level of profit and their business model is kinda same.

  • there is no such thing as Islamic banking, Once the rate is been fixed of how much you’ll get the profit is Suut (haram) / & say your original asset which you deposit is been invested or been given to any other party which is again haram (circulation your money in market in the name of islamic banking by giving it some sort of islamic name’s won’t make is Halal banking) Suut is Haram, Democracy is actually DemonCracy & if want to see more about this banking / islamic banking browse youtube for bitcoin & see how they have easily explain about this banking history & after seeing that it won’t be really hard to understand what this so called islamic banking is …………….. but Pakistan will inshaaAllah will be the one who will get on track no more demoncracy in future (only original khilafat – not the ones which ISIS impose or the talibans one) & no more of this stupid banking…i am neither some mola/molvi or any sort of Imam, but its not that much difficult to get this part easily in your skull that SUUT (banking) is Haram…. if have good extra amount buy some Land / buy some gold (hide the gold under some basement :p) any way jokes apart seriously guys Banking is Haram, no matter in which way they promote it… (it would be nicer when inshaaAllah Pakistan will be on track & actually the baitulmaal will be functional in real way) all the one’s living in society muslims/non-muslims will have equal rights & privilege – its not a rocket science just read history of Muslim Era you’ll get the idea —- Turkey is currently pushing toward that model (that failed cou attempt on them have given them a real good boost) may Allah(SWT) guide us all.

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