September 6, 2023 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued a Shariah compliance certificate to a licensed non-banking finance company (NBFC) offering Buy Now Pay Later (BNPL) services on the Shariah principle of Musawamah, whereby profit margin is included in the sale price of the commodity, said a press release issued today.
The certificate has been granted to Qist Bazaar (Private) Limited under the Shariah Governance Regulations, 2018.
The regulations provide an enabling regulatory framework for the certification of Shariah-compliant companies and Shariah-compliant securities.
Qistbazaar (Private) Limited, an NBFC providing investment finance services, has engaged the services of a Shariah advisor to structure its products and services in accordance with Shariah regulations.
It is expected that more players in the non-bank financial sector will choose to serve Islamic financial products and services in the country.
The first Shariah compliance certificate for a BNPL platform is a significant milestone, promoting Shariah-compliant financial products and enabling new business models for tech-based entrepreneurs.
The SECP, as per the constitutional requirements and its mandate, is committed to developing and promoting Islamic finance within all its regulated sectors.
Earlier this year, the SECP conducted a comprehensive diagnostic review of the Islamic finance market and accelerated efforts for the transformation of regulated sectors to offer Islamic financial services and products.
