FAISALABAD: State Bank of Pakistan (SBP) has provided a solid and practicable foundation for the elimination of Riba by December 31, 2027, however still the share of Islamic banking is only 20% in the overall banking sector which is quite negligible, said Waqas Kashif Bajwa, Chief Manager SBP.

Addressing an awareness session about Islamic Export Refinance Scheme (IERS) in Faisalabad Chamber of Commerce & Industry (FCCI), he said that regulation has been provided for the Islamic banking in addition to finalizing procedures to issue licenses for Islamic banks.

“Similarly, steps are also being taken for the transformation of conventional banks into Islamic banks”, he said and added that on the demand side a comprehensive awareness campaign has been launched.

“During these events, Sharia scholars try to remove the reservations and apprehensions of the people about the Islamic banking”, he said and added that Islamic banks have introduced a wide range of products to cater to the entire needs of the banking sector through Islamic mode.

He said that in this session, we would focus on IERS and similar awareness events would also be arranged in future in collaboration with FCCI.

Madam Qurat-ul-Ain Bilal Deputy Chief Manager SBP said that dedicated seminars were arranged for university students, businessmen and sharia scholars so that they could understand the Islamic banking system in its true spirit.

She urged the participants to focus on the contents of the presentation and raise maximum questions to satisfy themselves.

Abdul Basit Regional Sharia Coordinator presented a documentary on Islamic banking and IERS. Huzeefa Abdul Haseeb Akhtar from Sharia Compliance Department of Meezan Bank said that halal earning has been declared mandatory for every Muslim.

He said that IERS was introduced to provide finances at subsidized rates. Responding to a question, he said that KIBOR is the current benchmark for the entire banking sector.

“We could introduce IIBOR when the volume of Islamic banking would increase satisfactorily”, he said and hoped that it would eliminate general apprehensions about Islamic banking in addition to following the market rates.

Dr. Sajjad Arshad Acting President FCCI welcomed the participants and expressed satisfaction that SBP and FCCI have cordial working relationship but government borrow maximum from the banks leaving little amount for the private sector.

He said that the government borrowed a loan amounting to 5.5trillion from the banks this year. He said that the current system was fomenting apprehensions about the Islamic banking and a publicly acceptable explanation is must to restore the people’s confidence.

Former President FCCI Mian Muhammad Latif, Mian Gulzar Ahmad, Haji Abdul Rauf, Rana Ikramullah, Dr. Ijaz Nisar, Captain Retired Muhammad Farooq, Mian Muhammad Tayyab, Faisal Piracha, Ahmad Sohail, Muhammad Ali and Engineer Babar Shahzad participated in the question answer session while Vice President Haji Muhammad Aslam Bhalli offered vote of thanks.

Later Dr. Sajjad Arshad presented FCCI shield to Waqas Kashif Bajwa Chief Manager SBP. Vice President Haji Muhammad Aslam Bhalli received SBP memento from Chief Manager SBP for Mian Muhammad Adrees former President FPCCI & FCCI.

Waqas Kashif Bajwa also presented shields to Dr. Sajjad Arshad Acting President FCCI and other guests and speakers.