ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved its Strategic Action Plan 2024-2026, aimed at fostering the growth and development of Islamic finance in the non-bank financial sector.
As per details the plan was formulated by the SECP’s apex committee, chaired by Mr. Mujtaba Ahmed Lodhi, Commissioner-SCD, and established in 2023. The committee includes representatives from the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), SECP policy department heads, and industry experts. This collaborative effort seeks to provide a roadmap for Islamic finance development in line with the 26th Constitutional Amendment, which mandates the elimination of Riba by January 1, 2028.
Under the Strategic Action Plan, Islamic finance will be fully enabled across all regulated sectors under SECP’s jurisdiction by December 2026. Following this enablement, a detailed conversion strategy will be devised to transition conventional financial institutions to Islamic financial institutions. This transition aims to ensure a seamless shift while minimizing disruptions to the financial system.
The plan focuses on growth acceleration by expanding Islamic finance’s share in regulated sectors, achieving standardization to ensure consistency and harmony in Islamic financial practices, improving quality by enhancing the performance and efficiency of Islamic financial institutions, and strengthening the legal framework to build a robust foundation for sustainable growth.
To ensure its effectiveness, the plan underwent rigorous reviews and consultations with Capital Market Infrastructure Institutions (CMIIs). By leveraging CMII expertise, the SECP aims to create a conducive regulatory environment for Islamic finance, enabling its rapid expansion and integration into the economy. The SECP reiterated its commitment to supporting Islamic finance development in alignment with the nation’s constitutional and legal imperatives. This initiative underscores Pakistan’s strategic shift towards a more inclusive, Shariah-compliant financial ecosystem.
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