ISLAMABAD: Senators in the Senate Standing Committee opposed the exemption of Islamic banking and demanded that the same rules applicable to conventional banks should be applied to Islamic banking as banks are becoming Islamic banks only for profit.
According to Express News, a meeting of the Standing Committee on Finance was held under the chairmanship of Senator Salim Mandviwala. Committee members, senators, officers of the Ministry of Finance and State Bank and other relevant departments and representatives participated in the meeting. The issue of Islamic banking was discussed in the meeting.
Governor State Bank Jameel Ahmad said that he is working with Sharia scholars on Islamic bonds, trying to remove the concerns of Sharia scholars, applying prudential regulations on Islamic banks, Pakistan regarding Islamic banking. Ranked 25th in the world, conventional banks are charging more to customers than Islamic banks. Islamic banking is growing rapidly in Pakistan and Islamic banking is conducted according to international standards.
Senator Anusha Rehman asked whether the loss is ever transferred to the customer in Islamic banking. In response, the State Bank officials said that if the Islamic bank suffers a loss, they save the customer by reducing their profit due to competition.
Salim Mandviwala said that there is a complaint about Islamic banks that they are paying four percent less profit than commercial banks.
Senator Shibli Faraz said that the volume of Islamic sukuk has increased a lot. Our government had promoted it. Is there any limit set for issuing loans for Islamic banks?
Governor State Bank said that sukuk bonds are very popular in Pakistan, all government sukuks are issued on the basis of a property.
Salim Mandviwala said that Islamic banking follows the same prudential rules as normal banking.
Governor State Bank said that the prudential rules of State Bank are quite strict. Commercial banks charge more to the customer. Commercial banks have 40 trillion government loans while Islamic banks have less investment opportunities.
Senator Saleem Mandviwala said that Islamic banks are becoming Islamic only for profit and it is developing because of high profit. I am not against Islamic banking. That Islamic banks should be subject to the same rules as conventional banks. Islamic banks should not be exempted from banking laws. Regulate.
Governor State Bank said that Islamic banks cannot be over-regulated, they implement the State Bank’s policy. Islamic banks still have less assets.
Senator Mohsin Aziz said that I transferred my accounts to Islamic banking three years ago and I am satisfied that the government should transfer their accounts to Islamic banks. They don’t want profit.
Shibli Faraz said that the government has mobilized the banks, they don’t need to look elsewhere, all the loans are being given to the government, so now the bankers don’t need to work.
Senator Anusha Rehman said that the conditions of Islamic banking are benefiting the banks and not the consumer. State Bank should regulate Islamic banking better.
