Rachi: Governor State Bank Jamil Ahmed has said that a new scheme will be introduced soon to provide more incentives in remittances, the central bank has established a steering committee for Islamic banking, the State Bank is working hard to make its framework Sharia compliant.
He said this while addressing the National Islamic Forum under the theme of Tourist Welfare on Wednesday. He said that we are harmonizing the system with global standards and are reviewing their products by observing other markets of the world. From the beginning, the goal has been that our banking system should be Islamic because in 1948, the Father of the Nation had emphasized Islamic banking in his speech on the occasion of the establishment of the State Bank.
He said that the government has clarified its strategy for the implementation of the Islamic banking system by December 2027. Recently, the government has shown speed in issuing Sukuk. Hybrid Sukuk was issued on April 16, 2026, from which the government has raised Rs 1800 billion.
He said that a short-term hybrid sukuk has been launched in collaboration with the Pakistan Stock Exchange. The government has raised Rs 239 billion from the hybrid sukuk of the Pakistan Stock Exchange.
The Governor State Bank said that there is a need for capacity building among bankers and Sharia scholars. The State Bank is working on capacity building to work for maximum Islamic banking. The State Bank is working on Islamic banking in madrassas and universities. He said that the participants of the conference should formulate their recommendations in the light of which they will solve the problems together.
The Governor of the State Bank said that the central bank is working to provide facilities to freelancers. Last year, foreign exchange reserves reached $41.6 billion. More facilities will be provided to those who are sending money from abroad. A special help desk has also been set up to redress complaints. Our motto is that the banking system should be in accordance with Islamic concepts. We are moving towards a riba-free financial system. The State Bank has also approved the short-term sukuk culture. Islamic banks have been provided with an alternative system of treasury bills. After the issuance of the short-term hybrid sukuk, it will help provide a benchmark to the market.
Addressing the forum, Deputy Governor of the State Bank, Salimullah, said that the step of riba-free Pakistan is highly commendable. The model of Islamic finance works for the welfare of not only Muslims but also people of every religion. The main objective of any economic system is the welfare of the people.
He said that the Islamic economic system guarantees the welfare of the people in a very wonderful way. The State Bank is making progress according to the dreams of the stakeholders. 29% of Pakistan’s banking industry has become Islamic, while 40% of loans are being issued under Islamic banking and 44% of bank branches have become Sharia compliant. The most significant progress has been made in the last 2 months. In June, the Government of Pakistan has released the Post-2027 Financial System Strategy. The Government has also released a blueprint in this regard. It is good news that the Government has released the Post-2027 Strategy on its own.
He said that from January 1, 2028, local loans will be issued under the Islamic banking system. The Government has committed to making every effort possible for Sharia compliance in external loans in the strategy. The Government has announced to implement every commitment by December 31, 2027. After the maturity of conventional bonds and loans, they will be transferred to Sharia compliant instead of conventional rollover.
He said that the government is going to form a registry company in which the leaseable assets of the federation will be assigned. On this basis, the government will be able to improve its borrowing. He said that 20 out of 40 laws have been reviewed, amendments to these laws will be made before December 31, 2027.
Mufti Muneeb-ur-Rehman, Hassan Bakshi, Aamir Paracha, Bilal Bin Saqib and others also spoke on the occasion.