The Islamic banking industry has significant potential for financial inclusion in the country, said Deputy Governor State Bank of Pakistan (SBP), Sima Kamil.
She stated this while addressing the 9th Islamic Finance Expo & Conference organized by the Professional Network in collaboration with the Institute of Business.
Speaking at the inaugural session, Kamil said that the growth of Islamic banking has been satisfactory and that there are numerous opportunities for the Islamic banking industry in the country.
The share of Islamic banking in the house finance sector has already surpassed conventional banking as Pakistanis preferring interest free housing finance, she added.
“The SBP fully supports the Islamic banking industry, and the industry can play a vital role in enhancing the outreach of Shariah-compliant financial services,” Kamil said.
She remarked that the SBP is fully facilitating and taking steps to promote house financing as more than sixty industries are linked with the construction sector.
The keynote address was delivered by Irfan Siddiqui, President & CEO of Meezan Bank Limited. He said that keeping in view the high public demand and growth of Islamic finance, the midterm vision for Islamic banking is to achieve a fifty percent market share in the country.
“With an aim to attract more deposits and customers, the Islamic banking industry needs to deliver higher service quality to its customers while ensuring Shariah compliance and use of technology,” he added.
Speaking at the event, the Federal Minister of State, Ali Muhammad Khan said that it is the vision of the Government of Pakistan and Prime Minister Imran Khan to eliminate riba as Riyasat-e-Madina cannot be established on riba.
He declared that it is the responsibility of the government to act upon the direction given by the Quaid-e-Azam and the constitution, which requires the elimination of riba from the country.