Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, highlighted on Thursday the critical role Islamic finance and capital markets could play in achieving Pakistan’s macroeconomic stability and sustainable growth.
Speaking virtually at the Second International Islamic Capital Markets Conference & Expo in Karachi, the minister stated that while Pakistan had faced significant economic challenges in recent years, these issues were being effectively tackled. He emphasized that the country was now on the path toward stability and long-term economic progress.
Aurangzeb underscored the potential of Islamic financial instruments such as Sukuk, equity funds, and Shariah-compliant investment vehicles in attracting investment and reducing reliance on interest-based borrowing.
The conference was attended by prominent figures, including Shaikh Ebrahim Bin Khalifa Al-Khalifa, Chairman of the AAOIFI Board of Trustees; Dr. Sami Al-Suwailem, Acting Director General of the Islamic Development Bank Institute; Mr. Akif Saeed, Chairman SECP; and Mr. Saleemullah, Deputy Governor of the SBP.
The minister described the event as a testament to Pakistan’s commitment to fostering a robust Islamic capital market and transforming its financial ecosystem in line with Shariah principles. He noted that as of June 30, 2024, 56% of the market capitalization at the Pakistan Stock Exchange comprised Shariah-compliant securities. Additionally, 48% of mutual fund assets, 66% of voluntary pension fund assets, and 95% of REIT assets were Shariah-compliant.
Aurangzeb stressed the need for an economic system rooted in ethical and transparent principles that aligns with Islamic values while promoting inclusive and sustainable growth. He added that such a system would ensure the benefits of economic progress reach all citizens.
Islamic finance, he concluded, is pivotal for resource mobilization in critical sectors like infrastructure development and poverty alleviation through Islamic social finance, fostering an ethical and equitable financial framework.
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