Urgent need for primary legislation, solid Shariah governance so as to boost Islamic finance area: IPS

ISLAMABAD: Urgent dedicated primary legislation, swift adoption of AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards tailored to local financial context, and the establishment of a stronger Shariah governance framework are critical steps needed to ensure the sustainable and credible growth of Islamic banks and non-bank financial institutions in Pakistan. This requires coordinated efforts across the regulatory, legal, and institutional fronts, as no financial framework operates in isolation, says a Press release.
Leading financial and legal experts highlighted this at a session ‘Towards a Shariah-Based Islamic Finance Ecosystem in Pakistan’ held to discuss the legal framework for Islamic banks and non-bank financial institutions at the Institute of Policy Studies (IPS), Islamabad.
The discussion witnessed broad participation from the Securities and Exchange Commission of Pakistan (SECP), Islamic banks, academia, and legal professionals. The main speakers included Justice Dr Syed Muhammad Anwer, aalim judge of the Federal Shariat Court, Tariq Naseem, head of Islamic Finance Department at SECP, Tauseef ur Rahman, managing executive, SECP, and Dr Muhammad Ayub, former director, Research and Training, Riphah Center of Islamic Business. It was moderated by Dr Atiquzzafar Khan, board member, IPS.
In a key presentation, Tariq Naseem elaborated on a proposed legal framework for non-bank financial institutions, noting that the