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Government takes steps to spread Islamic banking

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ISLAMABAD: The federal government on Tuesday issued a notification announcing the constitution of a steering committee that would come up with recommendations in light of the work done so far by various stakeholders for promotion of Islamic banking in the country and implementing a real Shariah-based financial system.


The committee will comprise 10 members, headed by Saeed Ahmad, an actuary and a banker. Other members include Maulana Mufti Muneeb-ur-Rehman, a noted religious scholar, Muhammad Imran Usmani, religious scholar, Dr Waqar Masood Khan, Finance Secretary, Munir Kamal, Afaq Khan, Irfan Siddiqui, Atif Bajwa, Mian Muhammad Idrees, industrialist and Director Islamic Banking Department of State Bank of Pakistan.

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The committee, which will have authority to co-opt other members, will submit its recommendations before the end of 2014. The State Bank will provide secretarial support to the committee.

Islamic banking in Pakistan has recorded a reasonable growth and its asset base has grown to Rs1 trillion. However, consumers are still sceptical whether the products of Islamic banks are Riba-based like that of conventional banks or are Riba-free.

The government has also notified terms of reference of the committee. The body will review previous official reports on Islamic banking including the reports prepared by the Council of Islamic Ideology, the Commission for Islamisation of Economy, the Self-Reliance Commission under the Ministry of Planning and a commission of the State Bank in pursuance of the judgment of the Supreme Court of Pakistan.

The committee will also formulate a comprehensive policy framework for Islamic financial system and will suggest practical steps needed to be taken to implement the system. It will try to find out practical ways and means to maximise equity-based financing instead of the widespread debt-based system.

It will suggest solutions for the Islamic secondary market/money market for liquidity management and will chalk out a roadmap and propose a time plan for progress of different phases of Islamic banking.

The committee will also study international implications of converting conventional banking into Shariah-compliant banking. It has been asked to conduct an analysis of the possible legal obstacles to converting conventional banking into Shariah-compliant banking and the changes required to remove these obstacles.

The committee will review the existing research and training facilities in the country for Islamic finance and suggest measures for their reinforcement and new initiatives.

Lastly, under the terms of reference, the committee will chalk out a procedure and process for effective monitoring, overview and supervision of its terms of reference.

Shariah-based system: Government takes steps to spread Islamic banking – The Express Tribune
 
yeah. Pakistani government must spread "Islamic banking" in order to counter the horrible impacts of "Kafir (anti-Islamic) Banking".
 
yeah. Pakistani government must spread "Islamic banking" in order to counter the horrible impacts of "Kafir (anti-Islamic) Banking".

Any problem buddy ..... :smokin:
 
what do you do if people take loan and dont pay back ... @HRK

What do other banks do ...... in this situation ..... :D

yara on 'technical ground' non of Islamic bank advance loans ....... their nature of business differ ....
 
What do other banks do ...... in this situation ..... :D

yara on 'technical ground' non of Islamic bank advance loans ....... their nature of business differ ....
other banks will sell your collateral to recoup the cost, and finally write off as NPAs whatever they cant recover.
so what kind of transaction happen there .. is it mostly with corporates. ?
 
What do other banks do ...... in this situation ..... :D

yara on 'technical ground' non of Islamic bank advance loans ....... their nature of business differ ....

Subbbb Topiii Drama haiii ! :P

KIBOR pei calculated Rental ya Mark Up interest free ho hiii nahin saktaaa ! :lol:
 
Any problem buddy ..... :smokin:

What do you say about the banks that are not Islamic?
Kafirana banks
Un-Islamic banks

What?

Opposite of Halal Chicken is Haram chicken, isn't it?
Opposite of Halal pig is Haram pig, isn't it?
Opposite of Halal goat is Haram goat, isn't it?
Opposite of Halal cow is Hindu cow, isn't it?
Opposite of Halal lamb is Haram lamb, isn't it?

that means

Opposite of Halal bank is Haram bank, isn't it?

hope you understand now.

I have given more than enough "relevant" examples.
 
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other banks will sell your collateral to recoup the cost, and finally write off as NPAs whatever they cant recover.
so what kind of transaction happen there .. is it mostly with corporates. ?

yaap .... same happens in NPAs with a little difference in advancing stage ....

fundamental difference b/w Islamic banks & conventional banking is asset financing and capital financing

Subbbb Topiii Drama haiii ! :P

KIBOR pei calculated Rental ya Mark Up interest free ho hiii nahin saktaaa ! :lol:

yara litter aur galon main sharab bi weight ki jati hai or milk bi to kya Litter scale haraam ho gaya ..... ???

Dear interest in its nature is more of an Economic problem not a Banking problem ..... Islamic Banking is just an attempt to avoid it ..... but it could not eliminate Interest/ markup from economy ...... hope you would understand .....
 
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yaap .... same happens in NPAs with a little difference in advancing stage ....

fundamental difference b/w Islamic banks & conventional banking is asset financing and capital financing

Fundamental Difference is that in Conventional Banks you know you're paying Interest whereas in Islamic Banks you're paying Interest albeit in some Arabic Name or as Mark Up ! :sarcastic:

yara litter aur galon main sharab bi weight ki jati hai or milk bi to kya Litter scale haraam ho gaya ..... ???

Dear interest in its nature is more of an Economic problem not a Banking problem ..... Islamic Banking is just an attempt to avoid it ..... but it could not eliminate Interest/ markup from economy ...... hope you would understand .....

Lo kiyaa example haiii ! :omghaha:

Aur Bhai Jaaan....Islamic Bank doesn't even avoids it....it 'renames' it ! :lol:
 
What do you say about the banks that are not Islamic?
Kafirana banks
Un-Islamic banks

What?

Opposite of Halal Chicken is Haram chicken, isn't it?
Opposite of Halal pig is Haram pig, isn't it?
Opposite of Halal goat is Haram goat, isn't it?
Opposite of Halal cow is Hindu cow, isn't it?
Opposite of Halal lamb is Haram lamb, isn't it?

that means

Opposite of Halal bank is Haram bank, isn't it?

hope you understand now.

I have given more than enough "relevant" examples.

Dear your 'relevant examples' make me confused can you guide about the difference b/w

A muslim and non-muslim both are human ...... ???
 
Fundamental Difference is that in Conventional Banks you know you're paying Interest whereas in Islamic Banks you're paying Interest albeit in some Arabic Name or as Mark Up ! :sarcastic:

Well said.


IN halal bank you pay x% markup
in haram bank you pay x% interest

A muslim and non-muslim both are human ...... ???

Yeah but try to look down :lol:
 
Fundamental Difference is that in Conventional Banks you know you're paying Interest whereas in Islamic Banks you're paying Interest albeit in some Arabic Name or as Mark Up ! :sarcastic:

Lo kiyaa example haiii ! :omghaha:

Aur Bhai Jaaan....Islamic Bank doesn't even avoids it....it 'renames' it ! :lol:

OK forget Islamic Bank for a moment ..... & suppose Mr. A is a trustworthy person, people are used to give their money to him to do business and agreed to share the profit at pre determine rate ...... Same is the case of Mr. B

Mr. A is in the business of purchase and sales of Asset ....
Mr. B is in the business of Landing money on interest ....

Due to market condition both earn the same rate of profit ..... and distribute it in their investors at agreed rate .....

Now my dear which business is permissible ..... ??

Both of them earned same profit & paid the same rate of profit to their investors ..... then what is the difference b/w them ..... other then operational activities or the mode of business which they adopted to earn profit and Interest respectively .....

Well said.

IN halal bank you pay x% markup
in haram bank you pay x% interest

Difference is of operations .....

Yeah but try to look down :lol:

OK who tried to look down whom ....??
 
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