January 22, 2024 (MLN): To further strengthen the Shariah compliance framework and harmonize Shariah practices in the Islamic banking industry, several Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shariah Standards have been adopted with immediate effect.
The Islamic Finance Policy department of the State Bank of Pakistan (SBP) disseminated this information through a circular issued today.
These standards are subject to clarifications/amendments given in ‘Appendix – A’.
Standard No.
Shariah Standards
04
Settlement of Debts by Set-Off
07
Hawalah
16
Commercial Papers
22
Concession Contracts
48
Options to Terminate Due to Breach of Trust (Trust-Based Options)
51
Options to Revoke Contracts Due to Incomplete Performance
52
Options to Reconsider (Cooling-Off options, Either-Or Options, and Options to Revoke Due to Non-Payment)
The adoption of the above Standards is in addition to applicable regulations, instructions, and directives issued by SBP from time to time.
Failure to comply with these instructions may invoke penal action under the relevant provisions of the Banking Companies Ordinance 1962, the notice said.
