Bankers, businessmen and economists urged the masses to adopt Sharia-based banking and insurance in their daily lives and businesses as an alternative and interest-free financial system witnessing tremendous growth globally and across the country.
Speaking at the Second Islamic Financial Expo and Conference (IFEC) held at local hotel Thursday, they enlightened participants on the potential of Islamic banking and its advantages in the world and hereafter. They underlined the need for awareness and penetration of Islamic banking and Takaful services across the country. The event was organised by publicity channel & supported by Ernest & Young, Sidat Hyder, MAP & other organisations.
Islamic Banking Industry (IBI) is not only flourishing across the world but also in Pakistan despite loads of challenges regarding policy-making of the government for its promotion and misconception about its modalities among the masses, said speakers.
There is a widespread misconception about the Islamic banking services among masses but people are reluctant to get awareness and research on the importance of Sharia-based banking system in their lives, which is much better than conventional or interest-based banking, said Faizan Ahmed Memon, head of products development, Habib Bank Limited (HBL) Islamic Banking Division.
Though the growth of Islamic banking industry has been great in Pakistan, its pace is still slow keeping in view the importance of religion with a majority of the population, he said. The acceptability of Islamic banking is not encouraging among masses because Muslims of our country have forgotten the teachings of religion and prefer adopting non-Islamic ways for their financial needs, he added. Rizwan Atta, head of Islamic banking, Bank Alfalah Limited, said Islam is a complete code of life and it could not avoid addressing the financial aspect of people, which extremely important for them in this world.
He said the Islamic financial system was very old yet compatible in present times and was an alternative of the different interest-based and non-Islamic financial systems. The system is based on roots traced back from 70 to 80 decades, adding that even at times of Prophet Muhammad (PBUH) Muslims had a history of financing and partnership.
Atta said Islamic bankers were very active in introducing different products to customers which not only met their demands at commercial and domestic levels but also fulfilled Sharia principles. He added that bankers had introduced different products and services under the head of consumers and trade financing to facilitate the commercial sector as well as the masses to avail banking services per their needs. Mufti Ibrahim Essa, Sharia adviser Ernst and Young Ford Rhodes Sidat Hyder said confusion and negative mindset of people was the biggest impediment towards expansion of Islamic banking in the country, adding that scholars and education institutions must do their job to change the mind of people towards adoption of Islamic banking services.He said renowned clerics of the country were Sharia advisers for banks which were not involved in any corruption, financial scam or moral scandal.
There must be loopholes in Islamic banking industry which need to be addressed mutually by banks, regulators and the government. Otherwise, people will be left with interest-based banking system despite the fact that an Islamic financial system is stronger and better than any other financial and economic
An expo had also been arranged to showcase key industry players and advancements in the Islamic finance industry in Pakistan.
Leading banks such as Bank AlFalah, UBL Ameen, MCB, Meezan Bank, Bank of Khyber and others had set up their stalls in the expo.
Educational institutions related to the field in Pakistan were also participants on the occasion, such as Institute of Cost and Management Accountants of Pakistan (ICMAP).
