Islamic banking should be part of the national agenda in order to promote a Shariah-based financial system, according to State Bank of Pakistan (SBP) Head of Islamic Banking Salimullah.
He was addressing the participants here at the Islamic Finance Conference and Exhibition on Friday.
Salimullah said that Islamic banking has been on an expansion path throughout the country, providing a viable alternative model of the economy to the world.
The SBP has planned to intensify its efforts towards creating awareness and promoting Islamic banking across the country in collaboration with all Islamic banks, he informed the participants.
He said the central bank wants to double the Islamic banking branches’ network from 1,000 to 2,000 nationwide, and increase its share in the overall banking industry from 5% to 15%.
He said SBP is also actively trying to resolve the issues faced by Islamic banks, including financial difficulties, issues with the Securities and Exchange Commission of Pakistan’s regulations and taxation difficulties with the Federal Board of Revenue.
He said the central bank is working to enhance the capacity of Islamic banks and the Islamic banking divisions of conventional banks through advisory and consultation, and reassured the audience that major liquidity and asset building issues would be settled in the coming years.