Banking

Pakistan’s Banking System to switch to Islamic Instruments will strengthen economy

Karachi: November 14, 2022: The announcement by the Ministry of Finance has paved the way for Pakistan to undergo complete conversion to Islamic Banking. The government recently announced withdrawal of all the appeals against the Federal Shariat Court’s verdict. This decision will serve as the cornerstone for the country’s financial system to shift to interest-free banking by 2027. 

Muhammad Azfar Ahsan, Founder of CORPORATE PAKISTAN GROUP, Former Minister of State & Chairman, the Board of Investment (BoI), appreciated the timely move toward the Islamic financial system as the best way forward.

“This is a great milestone in the financial history of Pakistan. I look forward to the unshackling of the interest-laden debt systems and I am confident that this will lead to greater financial inclusion of the unbanked population who are hesitant to be a part of the conventional economic system. With this transformation, Pakistan will be on its way towards an inclusive socio-economic development.”  

Azfar Ahsan is a strong advocate of the Islamic Banking system and is striving to raise awareness about its positive impact and potential for overall prosperity. His recent articles have been promoting strong narratives, showcasing the advantages of a Riba-free economy. Interest-laden payments of loans, as he elaborated, compromise our national growth on one hand, and, on the other, eat into the serenity, or what we now call the well-being, of citizens, through unnecessary inflation, closure of businesses, and discouragement of investors into the country’s future.  

Ahsan is of the view that the implementation of Islamic Financial Instruments (IFIs) is the best way forward for a country like Pakistan that is crippled by the sheer burden of the mountain of debt and associated, ever-increasing, payments that seem to be a permanent feature on the horizon. The entrepreneurial potential of Pakistan is huge and IFIs, being Riba-free, hold great promise to surely translate that into economic success. 

The new financial system will evolve into an inclusive and sustainable ecosystem and its core strength of Shariah compliance will ensure progress with prosperity. 

Ahsan supports the low risk, high stability and Shariah-compliance features of IFIs as a great opportunity for Pakistan’s developing economy and hails the decision by the government in this regard.

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