Latest news with #InstituteofCostandManagementAccountantsofPakistan
Business Recorder
24-05-2025
- Business
- Business Recorder
ICMA conducts SWOT analysis of Islamic banking sector
KARACHI: The Institute of Cost and Management Accountants of Pakistan (ICMA) has conducted a detailed SWOT analysis of Pakistan's Islamic banking sector, highlighting its rapid growth, key challenges, and future potential as the country moves toward full Shariah compliance by 2027. According to the State Bank of Pakistan (SBP) data for September 2024, Islamic banking assets grew by 17.4% year-on-year to Rs. 9,881 billion. Deposits increased by 23.3% to Rs. 7,596 billion, net financing rose by 7.5% to Rs. 3,252 billion, and investments grew by 22.3% to Rs. 4,803 billion. Islamic banking now represents 19% of the total banking industry's assets and 23.2% of deposits. Islamic banks have shown greater resilience during economic downturns due to their asset-backed financing model, which provides more stability compared to interest-based conventional banks. A landmark achievement was the Rs. 50 billion (USD 170 million) raised by Lucky Investments Limited in a single day through the IPO of its Lucky Islamic Money Market Fund — the largest Shariah-compliant mutual fund launch in Pakistan's history. Key Islamic banks such as Meezan Bank, Al Baraka Bank, Faysal Bank, and BankIslami are expanding their branch networks and customer base across the country. These banks enjoy strong public trust by offering a diverse range of Shariah-compliant financial products. Despite these strengths, the sector faces challenges including a shortage of trained Shariah scholars and Islamic finance professionals, limited public awareness and financial literacy, and gaps in legal and regulatory frameworks for full Shariah implementation. Additionally, product innovation and technology adoption lag behind conventional banks, and Islamic banking penetration remains low in rural areas and among small businesses. Looking forward, Pakistan's Islamic banking sector has strong growth opportunities. The government's goal of fully Islamizing the banking sector by 2027 will open new markets. Emerging areas such as Islamic fintech, Takaful (Islamic insurance), and Sukuk (Islamic bonds), combined with rising global demand for ethical finance, will support this growth. Strategic partnerships and investments from Gulf and Southeast Asian economies, along with government incentives for Islamic finance development, add further momentum. However, the sector must navigate threats such as competition from conventional banks offering Islamic windows, potential delays in legal reforms, macroeconomic instability, and global financial regulations that may not align with Islamic banking principles. There is also the risk of reputational damage if Shariah compliance or governance standards are not rigorously maintained. ICMA stresses that addressing these challenges through stronger regulation, enhanced public education, and faster technological innovation will help Pakistan's Islamic banking sector reach its target of a 30% market share by 2025. This growth is essential to promote financial inclusion and support Pakistan's overall economic development.
Business Recorder
09-05-2025
- Business
- Business Recorder
ICMAP proposes four-pillar crypto adoption framework and CBDC launch plan
KARACHI: The Institute of Cost and Management Accountants of Pakistan (ICMAP), through its Research and Publications Department, has unveiled a comprehensive policy proposal titled 'ICMA Proposes Crypto Adoption Framework and CBDC Launch Plan to Government.' This timely initiative introduces a Four-Pillar Framework for the responsible adoption of crypto currencies in Pakistan and outlines a strategic Central Bank Digital Currency (CBDC) Development and Regulatory Launch Plan. The proposal is intended for consideration by the Pakistan Crypto Council (PCC) and relevant policymakers, aiming to facilitate a secure and well-regulated digital financial ecosystem in the country. In view of the rapidly evolving global landscape of digital finance and crypto investments, ICMAP's proposal serves as a much-needed foundation for Pakistan's policy direction. The Four-Pillar Framework focuses on key dimensions necessary for crypto integration, each supported by international case studies to guide implementation. The first pillar emphasizes the creation of a clear regulatory framework. It highlights the need for robust, transparent, and internationally aligned regulations to support the development of a safe crypto environment. This includes full compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) measures, as well as lessons from other jurisdictions that have effectively implemented such frameworks. The second pillar advocates for alignment with global crypto and blockchain standards. ICMAP stresses that Pakistan must actively engage with international standard-setting bodies and adopt best practices to ensure credibility and innovation. This involves the appropriate classification of digital assets, setting up effective controls for digital asset transactions, and encouraging blockchain innovation. The case study provided shows how a country successfully built a compliant yet dynamic crypto ecosystem by closely working with global organizations. The third pillar calls for active industry-government collaboration to encourage responsible innovation while maintaining financial stability. ICMAP highlights that close coordination between regulators and industry stakeholders is essential to strike a balance between enabling innovation and safeguarding the economy. The included case study illustrates how a country effectively fostered such cooperation, promoting growth while ensuring regulatory oversight. The fourth and final pillar underlines the importance of consumer protection and financial stability. ICMAP recommends clear and enforceable measures to ensure that consumers are protected from abuse and that markets operate with integrity. A case study demonstrates how another country implemented robust consumer safeguards in the crypto sector, ensuring both user confidence and market stability. Complementing the crypto framework, ICMAP has proposed a structured Central Bank Digital Currency (CBDC) Development and Regulatory Launch Plan. Recognizing the need for a state-backed digital alternative to crypto currencies, this plan recommends that the State Bank of Pakistan introduce a CBDC to enhance regulatory control, reduce volatility, and expand financial inclusion. A government-issued CBDC would provide a stable digital option that supports innovation without compromising monetary sovereignty. The proposal also reflects on global investment trends, noting that crypto currencies have attracted investors due to their higher returns compared to traditional stock markets and real interest rates. As more countries increase their exposure to digital assets, ICMAP believes Pakistan must take strategic steps to prepare for the financial future. The document also provides valuable insights into global developments in CBDC implementation, drawing lessons from countries at the forefront of digital currency adoption. Through this initiative, ICMAP reaffirms its role as a leading policy advisor and thought leader in Pakistan's financial landscape. The Institute remains committed to supporting policymakers in developing forward-looking, well-regulated frameworks that enable innovation, protect consumers, and preserve economic stability. Copyright Business Recorder, 2025
Express Tribune
22-03-2025
- Business
- Express Tribune
'Pakistan's agri-tax among highest in region'
Listen to article The Institute of Cost and Management Accountants of Pakistan (ICMA) has released a report in its latest issue of the ICMA Economic Intelligence, highlighting the significant challenges of enforcing the newly introduced agricultural income tax. The tax, implemented under the International Monetary Fund (IMF) conditions, has rates between 15% and 45%, with a 10% super tax on high-income landowners. This makes Pakistan's agricultural tax among the highest in the region, surpassing neighbouring countries like India, Bangladesh and Sri Lanka. The report emphasised the difficulties in enforcement due to outdated land records, fluctuating farm incomes, weak tax collection mechanisms and political resistance. Small farmers are particularly vulnerable, with the risk of higher product prices and inflation. ICMA suggested a gradual implementation, starting with large landowners, and called for modernising land records, enhancing digital tools and providing incentives to improve compliance.
