November 22, 2024 (MLN): In a bid to strengthen the Shariah Governance Framework (SGF) and align it with international best practices, market dynamics, and stakeholder feedback, the State Bank of Pakistan (SBP) has issued revised guidelines for compliance by Islamic Banking Institutions (IBIs).
The updated framework, notified today, has been directed to the Presidents and Chief Executives of all Islamic Banks, Islamic Banking Subsidiaries, and Conventional Banks operating Islamic Banking Branches.
The revised SGF shall be effective from January 01, 2025.
The IBIs are advised to make necessary arrangements to comply with the requirements of the revised SGF and submit compliance status to the State Bank of Pakistan by March 31, 2025.
All submissions required in the SGF shall be sent to the Director, Islamic Finance Policy Department.
Any non-compliance with provisions of the SGF will render the bank liable for penal action under the relevant provisions of the Banking Companies Ordinance, 1962.
