Islamic Institutions to Offer Financial Services in Pakistan

An Islamic financial institution may offer Islamic financial services in the financial services market, sources told ProPakistani on Monday.

Officials of the Securities and Exchange Commission of Pakistan (SECP) told ProPakistani that “Islamic financial services” covers Shariah-compliant financial products and other financial services offered by an Islamic financial institution or any administered legislation in accordance with Shariah principles and rules.

Every person offering Islamic financial services needs to ensure that its board of directors and management are fully aware of their fiduciary responsibility regarding Shariah compliance and governance towards its stakeholders and endeavor to discharge the same in true letter and spirit.

Such persons offering Islamic financial services should prudently recognize any additional considerations or exceptional circumstances that may require them to apply proportionality and/or other considerations toward the implementation of the Shariah principles and rules.

It is necessary for every Islamic financial institution that is a company to obtain a certificate of Shariah-compliant company in terms of sub-section (1) of Section 451 of the Companies Act, 2017.

Moreover, it is necessary for every security to be issued by an Islamic financial institution to obtain a certificate of Shariah compliance as required under Section 451 of the Companies Act, 2017, they added.