Islamic Finance Can Help Developing Countries Cope With Global Challenges

In order to help developing countries cope with global financial challenges, Prime Minister’s Adviser on Finance and Revenue Dr. Abdul Hafeez Shaikh has emphasized the potential of Islamic Finance.

Addressing an international conference on Islamic Economics and Finance in Istanbul through a video link on Sunday, Hafeez said Islamic banking is growing at a fast pace in Pakistan.

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He said the global Islamic Finance industry is worth $2.4 trillion and there are 1,400 Islamic Finance institutions in 60 countries.

In Pakistan, the growth of Islamic Finance coincides with global growth in the sector.

Dr. Abdul Hafeez Shaikh said that the coronavirus has engulfed the whole world and global GDP is going to contract by 3 to 4 percent. In Pakistan, the GDP is taking a hit of about 3 percent. He said the country’s exports and remittances have been adversely affected, and manufacturing and other sectors are also hurt.

The adviser said the government established a corona relief fund and transferred cash to 16 million vulnerable families to provide them support in this difficult time.

Dr. Hafeez Shaikh said Pakistan and Turkey enjoy cordial relations, adding:

These relations cover politics, trade, commerce, and attachment of our people towards each other. We are trying to promote the business to business relations and galvanize our economies to further strengthen bilateral relations.

The Adviser on Finance expressed confidence that expertise shared in this forum will benefit the huge potential of Islamic Finance to stimulate economic growth.



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