SBP briefs National Assembly’s Finance Committee on Islamic Banking

Islamic banking in the country registered tremendous growth in past over a decade and currently growing by an annual 27 percent.

A Session of National Assembly Committee of Finance was held in Islamabad under Mr. Qaiser Ahmad Shaikh where State Bank of Pakistan officials briefed the committee on Islamic Banking.

SBP officials informed the committee that Islamic Banking in Pakistan started from a meagre amount of 216 billion whereas it has reached a total of 2,000 billion today, with a 27% growth rate per annum.

Of the members present during the meeting, Mr. Rana Fazal said that every practicing Muslim wants the implementation of interest free economic system in the country. However, as long as the deficit prevails the interest element cannot be completely eradicated from the economic system. He further said that the Government needs to stop passing deficit budgets and should find other solutions. He said that Government is continuously borrowing huge sums of money to fill the budget deficit gaps.

Mr. Asad Umar who was also present at the meeting said that the Government is borrowing another USD 3 billion in foreign loans. Commenting on the Roadshows being held across the world, he mentioned that Secretary Finance is travelling around the world with a begging bowl to borrow money for Pakistan.

While justifying Secretary Finance’s absence from the meeting, Mr. Rana Fazal said that “Secretary Finance is currently abroad as he is busy spearheading the campaign of attracting buyers for Euro and Sukuk Bond Issue”

Mr. Sher Akbar Khan said that interest free Islamic Banking must be promoted in the nation.