Al Baraka to in­tro­duce new Is­lamic prod­ucts: CEO

Lender plans to open more branches in Pak­istan

The Pak Banker - - Front Page - M Ja­hangir Hayat


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.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.