First World Is­lamic Fi­nance Sum­mit

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World Is­lamic Fi­nance Sum­mit marked the be­gin­ning of the growth of Is­lamic fi­nance through joint ef­forts of in­dus­try play­ers and reg­u­la­tors with the State Bank as a sup­porter. Ac­cord­ing to SBP Deputy Gov­er­nor Muham­mad Kam­ran Shahzad, Is­lamic banks need to diversify their in­vest­ment port­fo­lios by en­hanc­ing fi­nanc­ing to Small and Medium Enterprises (SMEs), agri­cul­ture, hous­ing fi­nance and mi­cro­fi­nance sec­tors of the econ­omy.

The con­fer­ence was aimed at pro­vid­ing a fo­rum for the govern­ment and the pri­vate sec­tor or­gan­i­sa­tions to pro­mote op­por­tu­ni­ties for in­vest­ment in Is­lamic fi­nan­cial in­stru­ments and gain greater un­der­stand­ing of the chal­lenges be­ing faced by both the sec­tors.

High­light­ing the SBP’s role in pro­mot­ing Is­lamic bank­ing in the coun­try, She­hzad said that to en­cour­age the in­dus­try and to ven­ture into par­tic­i­pa­tory modes of fi­nanc­ing, the cen­tral bank has con­sti­tuted a task force hav­ing rep­re­sen­ta­tion of Is­lamic banks, busi­ness com­mu­nity, academia and ac­count­ing pro­fes­sion­als to de­velop an in­cen­tive frame­work for pro­mo­tion of such prod­ucts.

“This frame­work will be aimed at en­cour­ag­ing Is­lamic banks to of­fer par­tic­i­pa­tory modes, while min­i­miz­ing the is­sues of moral haz­ard, ad­verse se­lec­tion, in­for­ma­tion asym­me­tries and trust deficit be­tween the Is­lamic bank­ing in­sti­tu­tions and en­trepreneurs,” he said.

Nisar A Me­mon, former fed­eral in­for­ma­tion min­is­ter and Si­ra­jud­din Aziz, Chief Ex­ec­u­tive Of­fi­cer, Bank Alfalah Lim­ited, also spoke on the sub­ject. The sum­mit had Bank Alfalah as its Lead Part­ner, Al­baraka Is­lamic Bank as the Co-Lead Part­ner, IBM as the tech­nol­ogy part­ner, Pak Qatar Taka­ful Lim­ited, Faysal Bank Lim­ited and Askari Bank Lim­ited as part­ners, Meezan Bank Lim­ited as the Tech­ni­cal Part­ner, Riphah In­ter­na­tional Univer­sity as the Tech­ni­cal af­fil­i­ate, Khush­hali Bank Lim­ited, MCB Bank Lim­ited, Bank of Khy­ber, First Women Bank Lim­ited, National Bank of Pak­istan and Pak Kuwait Taka­ful Lim­ited as spon­sors of the sum­mit

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