The prospect of Pakistan’s development stands interlinked with the adoption of Islamic banking principles, asserted Faraz-ur-Rehman, President of the Korangi Association of Trade and Industry (KATI). Addressing the Sirat Islamic Banking Seminar held in collaboration with Habib Metropolitan Bank, Rehman emphasized the significance of reforming the Islamic banking policy to catalyze growth in the sector.
President Rehman highlighted the potential for augmenting the banking domain through interest-free banking mechanisms. He pointed out that the public’s trust in Islamic banking further solidifies the viability of this financial approach, which aligns with the principles of Sharia law.
The seminar, which saw the presence of prominent figures including Deputy Patron-in-Chief Zubair Chhaya, Senior Vice President Nighat Awan, and Vice President Muslim Mohammadi, aimed to foster a comprehensive dialogue on the role of Islamic banking in the country’s economic landscape.
“Finance serves as a fundamental precondition for the advancement of any economy,” remarked President Rehman during his address. He commended recent efforts by the Pakistani government to eradicate usury practices following a Sharia court ruling, viewing it as a welcomed stride towards modernizing the banking system and ensuring transparency in financial transactions.
President KATI further stressed on the global evidence indicating that non-interest-based systems tend to foster more robust economic growth compared to usurious systems. He underscored that such systems contribute to reducing the wealth disparity between different sections of society, thereby promoting equitable development.
Highlighting the need for broader financial inclusion, Rehman lamented that Pakistan’s banking penetration rate remains among the lowest, primarily due to the prevalence of usurious banking practices. Many individuals still opt for cash transactions to avoid involvement with the usurious system, thereby contributing to the informal economy.
Expressing optimism, President Rehman looked forward to the swift introduction of an interest-free banking system by the State Bank of Pakistan. He acknowledged that this shift would not only align with Islamic principles but also potentially bring more citizens within the formal banking sector.
During the event, senior officials from Habib Metropolitan Bank provided attendees with comprehensive insights into the institution’s array of Shariah-compliant products. Additionally, they addressed prevalent ambiguities in the realm of Islamic banking.
Habib Metropolitan Bank representatives stated that the institution has firmly established itself as a trustworthy financial entity in Pakistan, with a resolute commitment to playing a pivotal role in shaping the nation’s Islamic financial sector.
Photo Caption: KATI President Faraz-ur-Rehman presenting a shield to Hassan Naseem at the Sirat Islamic Banking Seminar on behalf of Metropolitan Bank. Notable attendees Zubair Chhaya, Nighat Awan, Muslim Mohamedi, Farhan-ur-Rehman, Adnan Faseeh, Gohar Shakeel and Haroon Saleem are also captured in the moment.