ISLAMABAD – Islamic finance has proved its viability on a global scale as Islamic banking and finance is spreading at a rapid pace, Federal Minister for Finance and Economic Affairs, Dr Abdul Hafeez Sheikh has stated. “In the wake of recent global financial crisis and debt problem of the Third world countries and the Eurozone, Islamic finance is now firmly established in the mainstream,” the federal minister said while addressing the inaugural session of two day international conference on Islamic Business and Finance.
The conference has been organised by Riphah Centre of Islamic Business (RCIB), a constituent institute of Riphah International University aiming to highlight the present state of Islamic business and finance and the ways the system could contribute to the stability of the global economy and provide opportunities for growth.
The federal minister said that the size of Islamic Banking is expected to be verging on $1.3 trillion in the near future. He stressed that at present more than 1,100 institutions are offering Islamic finance services worldwide. The size of investment in Islamic banking system in the country has grown to Rs 424 billion by 2010. It was claimed that the government is actively taking measures to encourage Islamic banking and finance.
He opined that Islamic banking is a very important asset for the agriculture sector which is poised to actively benefit from it. He however urged the banks to extend their role and reach the farming community.
The importance of modernising the overall banking system in the context of the economic progress of the country was highlighted. He said that Islamic banks, coupled with a number of dedicated Islamic academic, legal, regulatory and supervisory institutions could provide a solid platform for the future growth and development of the Islamic finance industry.
The minister called on Islamic banking institutions to boost awareness of Islamic banking products and develop human resource by facilitating and arranging training workshops, courses and, in particular, offering post graduate academic institutions.
Speaking on the occasion, Riphah International University Vice Chancellor Dr Anis Ahmed elaborated on the various aspects of the Islamic banking.
He said that the purpose of the conference was not only to discuss the present state of national economies but also to draw a light on faith and belief.
It was emphasised that Islam is a complete code of life which encompasses economic needs and clearly differentiates between Halal and Haram.
Senator Khursheed Ahmed speaking on the occasion said that the adoption of an Islamic way of banking was the need of the hour adding that Islamic banking and finance represents a significant shift.
He said that new approach was needed to change the fundamentals of finance to evolve a new financial and economic system and urged the participants of the conference to ponder on the fundamentals and realise the importance of Islamic banking and finance. It is pertinent to mention that this was the first international conference being held in Pakistan on the subject. A large number of world-renowned economists and scholars from various countries are participating in the conference.
