KARACHI
As a part of the awareness drive for Islamic Banking and Finance, a seminar was organised recently at a local hotel in Karachi. The event started with the welcome note by prominent personalities related to Islamic banking industry. It was followed by the key note address by Chief Guest, State Bank of Pakistan Governor Tariq Bajwa.
Speaking on the occasion to the packed audience, President and CEO of National Bank of Pakistan (NBP) Saeed Ahmad emphasised upon the need to clarify misconceptions regarding Islamic banking and create awareness among the public.
Removing misperceptions and putting forward clarifications to solve any confusion in the minds of potential customers, academia and scholars will pave the way to further advance the cause of the industry.
Saeed Ahmad also acknowledged the positive and supportive role of the regulatory authority – State Bank of Pakistan – for continuously promoting Islamic Banking sector and facilitating approvals for the conversion of conventional branches into Islamic banking branches.
He was pleased to hear from Tariq Bajwa he is committed to maintaining SBP’s support for the sector. The strategic aim to achieve 20 per cent share target, for Islamic banking sector by 2020, remains intact. As per a study entitled “Knowledge, Aptitude and Practice (KAP),” commissioned by SBP & DFID UK, 74 per cent of consumers prefer Islamic Banking. However, the current level of around 12 per cent share leaves a gap of 62 per cent yet to be achieved.
Saeed Ahmad said that it will not be possible for Islamic Banking to achieve its full potential without due support from SBP and the government. Islamic Banking fits well in the government’s “National Financial Inclusion Strategy” which aims to achieve 50 per cent financial inclusion by 2020.
Saeed Ahmad reiterated that the biggest characteristic of Islamic banking is that it relates to real economic activities and there is no place for excessive risk taking or speculative activities.
He emphasised that Ulema may play a very important role in attracting the public to Riba-free banking offered by Islamic banks.
He, however, advised Islamic banks to conduct an open dialogue with scholars in Mosques to remove their reservations and misunderstanding. According to him, this will create a flood of demand for Islamic banking.
In his speech, Saeed Ahmad emphasised the importance of Islamic Banking for NBP as well.
In addition to the SBP governor, SBP Deputy Governor Jameel Ahmed, SBP Executive Director Samar Hasnain, Meezan Bank President Irfan Siddiqui, CEO of Albaraka Shafqat Ahmed, Dr Imran Usmani, and experts on Islamic Banking also took part in the event and emphasised upon the importance of the sector and laid out the problems faced by it.
