First World Islamic Finance Summit
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