Attock Chamber of Commerce and Industry (ACCI) said on Thursday that growth rate of Islamic banking in Pakistan is very impressive.
A decade back Pakistan had only one Islamic bank while now we have five Islamic banks and Islamic banking branches representing all the top ten conventional banks, it said.
75 countries have recognised Islamic banking; major banks including HSBC, Citigroup, Deutsche Bank and Standard Chartered have Islamic banking branches or windows which prove success of Riba-free banking, said Attock Chamber of Commerce President Tariq Mehmood. Over nine hundred Islamic banking branches in Pakistan speak of the confidence of the masses in the Islamic banking and the successful handling of regulator, he added. He said that the share of Islamic banks in the assets of all the banks can exceed ten per cent in the current fiscal year if introduction of new products is focused.
Tariq Mehmood asked the Islamic banks to exploit the full potential of interest-free banking, expand network, and offer new products to reach to underserved sectors and un-banked population. Tariq Mehmood, who is also Pak-UK Business Council Director and FPCCI Committee on Health Chairman, said that Islamic banks should maintain the image of better risk managers which is necessary for depositor’s confidence.
The deposit base of Islamic banking has been expanding faster than general banking due to speedy and better returns which is a very healthy development, he maintained. Tariq asked Islamic banks to keep an eye on global strategies, remain Shariah compliant and find ways to improve rates of return to match inflation which will boost confidence of masses in Islamic banking. Islamic banks have remained unharmed during the global financial collapse which has also saved investments of masses, the business leader observed.
