State Bank of Pakistan (SBP) has directed Islamic banks to adopt the Shariah Standard Shariah Standard of the global Islamic body, Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) on “Sale of Debt” with immediate effect.
This compliance will standardize and harmonize Shariah practices in Islamic Banking Institutions (IBIs) in Pakistan with the global Islamic financial institutions under AAOIFI Shariah Standard No. 59 – Sale of Debt.
The adoption of this Standard is in addition to applicable regulations, instructions and directives issued by SBP from time to time, according to a circular issued on Friday. Failure to comply with these instructions may invoke penal action under the relevant provisions of the Banking Companies Ordinance 1962, it stated.