Islamabad (TDI): Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said on Thursday that Islamic finance and Islamic capital markets can play a pivotal role in helping Pakistan remain steadfast on the road to sustainable growth and macroeconomic stability.
He said that Pakistan had faced major economic challenges in recent years. However, those issues were now being effectively addressed, and the country was on the right path towards microeconomic stability and sustainable development.
Virtually addressing the inaugural session of the Second International Islamic Capital Markets Conference & Expo that opened in Karachi, he said that Islamic finance, particularly Islamic capital markets, could play a major role in this road to market as instruments such as equity funds, sukuk, and Shariah-compliant investment vehicles not only attracted investment but also reduced reliance on interest-based borrowing.
Chairman AAOIFI Board of Trustees Shaikh Ebrahim Bin Khalifa Al-Khalifa, Acting Director General, Islamic Development Bank Institute Dr. Sami Al-Suwailem, Chairman SECP Akif Saeed, Deputy Governor SBP Saleemullah and other senior delegates attended the session.
In his keynote address to the session, the Finance Minister described the gathering as reflective of Pakistan’s growing commitment to fostering a robust Islamic capital market, highlighting its dedication to transforming its financial ecosystem according to Shariah principles.
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He said the government was committed to transforming the financial system in line with Shariah principles, adding that as of June 30, 2024, 56 percent of market capitalization at the Pakistan Stock Exchange (PSX) comprises Shariah-compliant securities.
He highlighted the need for “an economic system that is not only in line with our faith but also capable of sustainable and inclusive economic growth”.
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He said that Islamic finance and instruments such as equity funds, sukuk, and Shariah-compliant investment vehicles were important tools for mobilizing resources for critical sectors, including poverty alleviation and infrastructure development through Islamic social finance, while maintaining adherence to ethical and transparent principles.
“With these mechanisms in place, Pakistan can emerge as a leading global hub for Islamic finance,” he added.
