Al Baraka to introduce new Islamic products: CEO
Lender plans to open more branches in Pakistan
Al Baraka Islamic Bank is set to introduce new Islamic financial products besides opening up more branches across Pakistan to facilitate the consumers of Islamic products.
This was stated by President and Chief Executive Officer of Al Baraka Islamic Bank Adnan Ahmad Yousaf while talking to LCCI President Farooq Iftikhar on Friday. Country Head Al Baraka Islamic Bank Shafqaat Ahmad, LCCI Vice President Abuzar Shad, former Presidents Mian Ashraf, Mian Misbahur Rehman, Sheikh Asif and Mian Muzaffar Ali were also present on the occasion.
Adnan Yousaf said that Islamic banking trend is on the rise today as it has earned a shine that continues to attract funds. “We don’t treat money as a commodity, which makes a few people richer and everyone else poorer. Our way generates economic activity and spreads money throughout society. Islamic finance is based on a system of asset leasing and partnerships rather than outright moneylending.”
He said that Islamic mode of banking and all its tools are gaining ground in Pakistan compared to con- ventional mode of banking, though it is a highly untapped market as yet. He said Islamic financing products such as Mudarbah, Ijara, Musharaka and Islamic Export Refinance etc, are catering to a diverse cross-section of the economy, including the Corporate, SME and Consumer sectors.
He said that today a large number of Islamic financial institutions are operating world-wide from China to US. Western banks through their Islamic units in UK, Germany, Switzerland, Luxembourg etc also practice Islamic banking. He said that the basic principle of Islamic banking is the prohibition of interest, which has seldom been recognised as applicable beyond the Islamic world but many of its guiding principles have consciously or unconsciously been accepted. The majority of these principles are based on simple morality and common sense, which form the bases of many religions including Islam.
Adnan Yousaf said that the Islamic financial system employs the concept of participation in the enterprise, utilizing the funds at risk on a profit-and-loss-sharing basis. This by no means implies that investments with financial institutions are necessarily speculative. He said that since the inception of modern Islamic finance in 1960’s, Islamic banking has evolved from its relatively modest size to a vibrant industry with an increasing global footprint having a size of $1.35 trillion and annual growth rate of more than 20 percent.
Speaking on the occasion, the LCCI President Farooq Iftikhar called for a mass media campaign to create awareness about Islamic banking to give further boost to the growth momentum of Islamic banking industry.