Bankers from Islamic Bank have criticized the federal government on its lack of cooperation for Islamic Banking and fallacies of public as the ideal reasons hindering its rise in Pakistan.
This was discussed in a media brief occasioned at IBA Centre of Excellence in Islamic Finance (CEIF) to notify about the forthcoming “World Islamic Finance Forum”.
Dr. Ishrat Hussain, Chair CEIF and previous Governor of SBP, President Meezan Bank Irfan Siddiqui, Dean IBA Dr. Farrukh Iqbal, MD and CEO of Takaful Pakistan Rizwan Hussain and Director IBA CEIF Ahmed Ali Siddique talked to media.
The former governor emphasized that Islamic Banks should get all the necessary backup from the government. He believes that there are many routes where conventional banks are not a perfect fit whereas Islamic Banks can utilize their unmatched services in those areas.
“IBs can go to lower-class borrowers like Small and Medium Enterprise (SME), Agriculture sector and low-cost housing and help in creating more assets. Diminishing Musharakah is a very good product where credit value of borrower increases gradually,” Dr. Ishrat stated.
He also mentioned that as per a survey, nearly 76 percent Pakistanis do not want to engage in transactions having Interest (Ribah) but as there are confusions regarding Shariah-compliant banks, the growth is stagnant.
“When IB was introduced in Pakistan, conventional bankers became Islamic Bankers as there was no institution who could have developed real Islamic Bankers. Now with many centers of excellence, qualified Islamic Bankers are becoming part of the industry and gradually it will pick up momentum.”
In the sessions for questions and answers, Irfan Siddiqui stated that the government is not giving any support to better development in Islamic Bank in the country. They are already giving less number of budget support on borrowing compared to conventional banks in Pakistan.