logo
Industry bigwigs gather: BankIslami and ZLK host session on Islamic finance

Industry bigwigs gather: BankIslami and ZLK host session on Islamic finance

ISLAMABAD: In a joint effort to promote Riba-free banking in Pakistan, BankIslami and ZLK Islamic Financial Services, Pakistan's first Shariah-compliant brokerage firm, hosted a high-impact session on Islamic finance for a diverse group of industry leaders and advocates of ethical banking.
Titled 'Leading with Purpose,' the event focused on meaningful conversations around Islamic finance and aimed to help individuals make informed, faith-aligned financial decisions. Held at a local hotel in Islamabad, the session was attended by valued partners and corporate leaders from the business community, along with notable organizations, including Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Islamabad Chamber of Commerce & Industry (ICCI), Rawalpindi Chamber of Commerce & Industry (RCCI), as well as representatives from civil society, the armed forces, government, financial institutions, and religious scholars.
Dr. Mufti Irshad Ahmad Aijaz, former Chairman of the Shariah Advisory Committee of the State Bank of Pakistan and current Chairman of the Shariah Advisory Committee of SECP and Chairperson of the Shariah Board of BankIslami, delivered the keynote address, highlighting the growing global relevance of Islamic finance. He addressed common misconceptions and emphasized the ethical and socially responsible nature of Islamic finance.
'As leaders in Islamic finance in Pakistan, we are committed to fostering meaningful dialogue on Riba-free banking and raising awareness to drive this crucial cause forward,' commented Rizwan Ata, President & CEO of BankIslami. 'We are honored to join hands with ZLK Islamic Financial Services to strengthen the position of Islamic banking and collectively work towards realizing our vision of a Riba-free economy,' he added.
Zahid Latif Khan, Chairman of ZLK Islamic Financial Services, commented, 'This partnership with BankIslami is rooted in a shared vision to broaden understanding and trust in Shariah-compliant investments. Together, we are laying the foundation for a principled financial ecosystem that serves all segments of society and aligns with the ethical aspirations of our people, regulators, and national direction toward a fully Islamic financial system.'
This session marked a significant step forward in reinforcing the role of Islamic finance in Pakistan's evolving financial landscape. As the country progresses toward a fully Shariah-compliant system, BankIslami and ZLK Islamic Financial Services remain committed to leading with purpose, engaging stakeholders, and shaping a future centered on ethical, inclusive, and faith-aligned financial solutions.
Copyright Business Recorder, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

SBP chief says low domestic savings key structural challenge
SBP chief says low domestic savings key structural challenge

Business Recorder

time11 hours ago

  • Business Recorder

SBP chief says low domestic savings key structural challenge

State Bank of Pakistan (SBP) Governor Jameel Ahmad has cautioned that despite improvements in key macroeconomic indicators, Pakistan continues to grapple with structural challenges, foremost among them the country's persistently low domestic savings rate. The central bank chief made these remarks while addressing a seminar in Karachi on Monday. He said that despite improvement on the economic front, including a decline in the inflation rate and pick-up of growth, 'some long-standing structural challenges remain'. 'One of the most serious among them is our persistently low domestic saving rate,' he said. The SBP chief, while citing the latest Pakistan Economic Survey, said that Pakistan's domestic saving rate stands at 7.4% as a percentage of GDP. 'This is significantly lower when compared to an average of 27% in South Asia and 41% in East Asian economies.' SBP governor urges banks to prioritise SME lending Jameel said that due to a low savings rate, Pakistan heavily relies on foreign inflows to meet its development needs. 'But this reliance has come at a cost,' he said. 'It has contributed to repeated balance of payment crises, instability in the FX markets and inflationary pressures, which, over time, have weakened our growth momentum.' The central bank chief was of the view that in order to avoid the boom-bust cycle, Pakistan needs to mobilise more domestic savings and channelise them into productive investments. Elaborating on the current state of Pakistan's capital markets, the central bank chief shared that in the last two decades, Pakistan's government bond market has developed into offering a broad range of securities, including fixed rate, floating rate and Sharia-compliant options of various maturities. 'However, the government bond market remains heavily concentrated within the banking system,' he noted. Jameel shared that the SBP has taken steps to broaden access and deepen the country's bond market, including revamping the primary dealer system. 'The scope of the investor portfolio's securities account has also been expanded to microfinance banks, CDC and NCCCPL. This provides close to 100 million branchless banking and mobile banking users in the country an opportunity to invest in government securities.' Moreover, account opening has been simplified through the Customer's Digital Onboarding Framework, he said. 'Together these reforms aim to diversify the investor base, enhance liquidity and make the sovereign segment more resilient.' He noted that the corporate debt market remains largely absent. 'Outstanding corporate bonds amount to less than 1% of our GDP, substantially lower than the Asian countries.' Jameel said that non-financial firms, as well as sectors including manufacturing, infrastructure and renewable energy, remain almost entirely dependent on bank loans.

Has Quaid's economic vision been ignored?
Has Quaid's economic vision been ignored?

Express Tribune

time15 hours ago

  • Express Tribune

Has Quaid's economic vision been ignored?

On July 1, 1948, the Quaid-e-Azam articulated his vision for Pakistan's economic system. He strongly emphasised the need for a framework based on Islamic principles. He believed the Western economic model could not realise equality and happiness. He tasked the State Bank of Pakistan (SBP) to develop a system that ensured prosperity and fairness for all. In his words, "We must work our destiny in our own way and present to the world an economic system based on the true Islamic concept of equality of manhood and social justice. We will thereby be fulfilling our mission as Muslims and giving to humanity the message of peace, which alone can save and secure the welfare, happiness, and prosperity of mankind." Unfortunately, after the Quaid-e-Azam, Pakistan lost its direction. The country adopted the liberal economic model without a comparative analysis. The liberal approach failed to deliver and created multiple problems. The country is now facing an economic, financial, and social crisis. Overemphasis on the private sector and private sector-led growth has triggered crises like the IPP-driven circular debt. This debt has crippled the economy. Growth remains under stress, and despite efforts, Pakistan is struggling to find a sustainable way to improve its growth rate. The social indicators are even more alarming. The World Bank estimates about 44.7% of the population lives below the poverty line. Of them, 16.5% are in extreme poverty, struggling to meet basic daily needs with no certainty about the future. Poverty is rising, despite government claims of investing in programmes like the Benazir Income Support Programme (BISP). Each year, billions of rupees are spent on BISP, but the results are disappointing. Poverty continues to increase, raising questions about the programme's effectiveness and sustainability. Food insecurity is another concern. A 2013 study estimated that 58.8% of Pakistanis were food insecure. Conditions have likely worsened due to poor economic performance. Devaluation of the PKR has eroded people's purchasing power, limiting access to healthy food. Mismanagement in the agricultural sector has also led to lower production and reduced availability of quality food. These problems stem from structural flaws in the liberal model. It promotes wealth accumulation in a few hands and lacks redistribution mechanisms. Therefore, the first step to revive the economy should be adopting a more effective system. A study of different models shows each offers something useful. Yet, the Islamic economic model stands out as one of the most comprehensive. Why? Because it was designed by the Creator of the universe and implemented by His Prophet Muhammad (PBUH). The Prophet established a distinctive system of economics and well-being for humanity. This is why the Quaid-e-Azam urged the State Bank to base Pakistan's model on Islamic principles. The Islamic system denounces individualism, promotes collective welfare, discourages accumulation, and glorifies sharing with the needy. To achieve this, Islam introduced two powerful instruments. The first is the ban on Riba (interest), considered the root cause of economic and social ills. Riba is strictly prohibited. No one is allowed to give, take, or facilitate it. Islam views it as an exploitative practice and act of injustice. It accrues benefits by exploiting others' difficulties. It also contradicts the principle of kindness and societal norms. Societies thrive on cooperation, helping people overcome hardships. But a Riba-based system enables some to profit from the misery of others. This creates divisions, weakens cohesion, and breeds class systems. Riba also discourages investment in productive sectors. It prompts people to de-invest, undermining production and job creation. Many prefer to keep money in banks and earn interest without effort. This de-investment starts at the individual level and extends nationally. Thus, instead of a Riba-based system, Islam promotes kindness and voluntary sharing. Islam encourages Riba-free loans that support individuals and communities. The second instrument is Zakat, a system for redistributing wealth. The beauty of Zakat lies in its mandatory nature, but it applies only to the wealthy. This contrasts with liberal systems where everyone pays taxes regardless of income. In Islam, wealthy individuals must share at least 2.5% of their wealth with the poor. Zakat is an annual obligation, and the wealthier one grows, the greater the contribution. No additional rules or regulations are needed. Zakat distribution is restricted solely to the poor. It targets the most disadvantaged, aiming to improve their lives and living standards. The process continues until prosperity is widespread, and those eligible for Zakat no longer exist. This mechanism reduces inequality and bridges social gaps. Although mandatory for Muslims, other economic systems can also learn from it as a valuable case study. Zakat has an important economic dimension too. It boosts domestic consumption, which businesses seek. The poor use Zakat resources to buy essential goods and services. This stimulates markets and creates new business opportunities. Such instruments are not found in other models. The Islamic system prioritises social development and welfare without discrimination based on religion or ethnicity. It respects the right to accumulate wealth but binds it to social norms and Islamic laws. It fosters a culture of care and discourages exploitation. This creates the foundation for peace and prosperity. Yet, despite offering the best solutions to humanity's challenges, these instruments are not fully applied anywhere. Even Muslim countries and individuals, for whom they are obligatory, neglect them. Zakat is one of the five pillars of Islam. Still, implementation remains weak. Interestingly, in the modern world, we find limited resemblance in socialism with Chinese characteristics. This system helped China tackle poverty and inequality. But Muslim countries remain far from practicing their own divinely guided model. In conclusion, Pakistan must return to the Quaid-e-Azam's vision and adopt Islamic principles to build its economic framework. If not, the crises will persist, and the country will remain trapped in cycles of poverty, inequality, and instability. THE WRITER IS A POLITICAL ECONOMIST AND A VISITING RESEARCH FELLOW AT HEBEI UNIVERSITY, CHINA

Mera Brand Pakistan Expo 2025 inaugurated
Mera Brand Pakistan Expo 2025 inaugurated

Business Recorder

time4 days ago

  • Business Recorder

Mera Brand Pakistan Expo 2025 inaugurated

LAHORE: Chief Jamaat-e-Islami Hafiz Naeem ur Rehman has stressed that achieving the true objectives of Pakistan's creation requires independent formulation of national policies and liberation from foreign domination and colonial influence. While addressing the inaugural ceremony of the Mera Brand Pakistan Expo 2025 at the Lahore Expo Centre on Thursday, he said economic self-reliance can only be achieved by freeing the economy from the International Monetary Fund (IMF) and the interest-based system. 'Mera Brand Pakistan is a successful step towards this goal,' he stated. Pakistan Businessmen Forum has organised the Expo. The event was attended by Lahore Chamber of Commerce and Industry President Abu Zar Shad, Senior Vice President Khalid Usman, business leader Anjum Nisar, Pakistan Businessmen Forum President Ijaz Tanveer, and Alkhidmat Foundation President Dr Hafeez ur Rehman. Earlier, Hafiz Naeem ur Rehman hoisted the national flag at the Expo Centre to mark Independence Day and inaugurated the exhibition. He congratulated the nation and lauded the Pakistan Businessmen Forum and the Lahore Chamber for successfully organising the event. Touring the stalls, he noted that after two successful exhibitions in Karachi, Mera Brand Pakistan has now reached Lahore. He urged the business community to take the initiative to Islamabad, Faisalabad, and eventually to Dhaka and other Islamic countries. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store