Title

Keynote Address

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Submission Type

Inaugural Session

Abstract/Description

  • Islamic Capital Markets (March 2022) – Shariah compliant scripts comprise 61% of market cap at PSX, AUMs of Mutual Funds Scheme make up 35% while pension funds schemes make up 65% of the market capitalization.
  • SECP has been promoting Islamic Finance via 4 principles of protection, circulation and halal augmentation of wealth, justice and fairness in return distribution, promoting real economic activity and enhancement of society well-being
  • SECP has been facilitating sustainable growth of Islamic Finance and a few outcomes of that were listing of energy sukuk of BHL, launch of first ever Shariah Compliant Exchange Traded Fund, approval of first ever Shariah Compliant development REIT, revamping of commodity Murabahah platform, reform and consistent active utilization of Murabahah share financing product, progress towards Islamic Financing against electronic warehouse receipts, approval of notation of green Modarbah and permission of Takaful operator to test parameter insurance, licensing of 2 Shariah Compliant financing companies and disbursement of Shariah Compliant loans by non-bank IFIs such as micro-finance institutions.
  • However, some structural challenges exist i.e., the financial landscape remains bank centric, the Islamic financial assets are predominantly in the form of CASA which can be in other products as well, only 8% of the Government debt securities (GDS) are available for the Islamic Banks, financial inclusion has been credit centric while private equity lacks the same level of attention, rural financial inclusion has been neglected.
  • Some suggestions included nation-wide committee for promotion of Islamic Finance and development of a sustainable Islamic Finance ecosystem, consideration of tax measures to promote use of Islamic Finance products and services among corporate sector and businesses, need to develop a culture for innovation and entrepreneurship in Islamic Finance, need for adaptation of technology to broad based Islamic Finance.

Location

Movenpick Hotel, Karachi

Session Host

Mr. Muhammad Raza, Customer Support & General Services, Meezan Bank Limited

Event Website

https://wiff.iba.edu.pk/

Start Date

30-5-2022 9:35 AM

End Date

30-5-2022 9:45 AM

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May 30th, 9:35 AM May 30th, 9:45 AM

Keynote Address

Movenpick Hotel, Karachi

  • Islamic Capital Markets (March 2022) – Shariah compliant scripts comprise 61% of market cap at PSX, AUMs of Mutual Funds Scheme make up 35% while pension funds schemes make up 65% of the market capitalization.
  • SECP has been promoting Islamic Finance via 4 principles of protection, circulation and halal augmentation of wealth, justice and fairness in return distribution, promoting real economic activity and enhancement of society well-being
  • SECP has been facilitating sustainable growth of Islamic Finance and a few outcomes of that were listing of energy sukuk of BHL, launch of first ever Shariah Compliant Exchange Traded Fund, approval of first ever Shariah Compliant development REIT, revamping of commodity Murabahah platform, reform and consistent active utilization of Murabahah share financing product, progress towards Islamic Financing against electronic warehouse receipts, approval of notation of green Modarbah and permission of Takaful operator to test parameter insurance, licensing of 2 Shariah Compliant financing companies and disbursement of Shariah Compliant loans by non-bank IFIs such as micro-finance institutions.
  • However, some structural challenges exist i.e., the financial landscape remains bank centric, the Islamic financial assets are predominantly in the form of CASA which can be in other products as well, only 8% of the Government debt securities (GDS) are available for the Islamic Banks, financial inclusion has been credit centric while private equity lacks the same level of attention, rural financial inclusion has been neglected.
  • Some suggestions included nation-wide committee for promotion of Islamic Finance and development of a sustainable Islamic Finance ecosystem, consideration of tax measures to promote use of Islamic Finance products and services among corporate sector and businesses, need to develop a culture for innovation and entrepreneurship in Islamic Finance, need for adaptation of technology to broad based Islamic Finance.

https://ir.iba.edu.pk/wiff/2022/agenda/20