Federal Minister of Finance and Revenue Ishaq Dar launched four Shariah-compliant National Savings products on Monday, emphasising the country’s steadfast commitment to promoting Islamic banking and finance.
Dar stated during the launch ceremony of the Shariah Compliant products by the Central Directorate of National Savings (CDNS) that the government is committed to implementing a Shariah Compliant financial system to promote and encourage interest-free Islamic banking and finance in the country.
According to the finance minister, the directorate has planned and implemented a Shariah-compliant investment and savings scheme that would be formally launched on July 1, 2023.
A first, the minister stated that the CDNS has launched four investment and saving products with one-year, three-year, and five-year terms, as well as initiating a saving account facility, adding that it is a flexible scheme with monthly profit and the ability to withdraw principal amount, which would encourage savings and ensure full returns.
Ishq Dar stated that shortly after taking office as finance minister, he directed the State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) to withdraw their petitions challenging the Federal Shariah Court’s decision to implement an interest-free banking and financing system in the country.
Meanwhile, a high-level steering committee led by the Governor of the SBP has been formed to explore ways and means of promoting a Shariah-compliant financial sector in the country. Other famous scholars and specialists from the banking and finance industries served on the group.
He stated that during the previous tenure of the Pakistan Muslim League-Nawaz (PML-N) government, a committee was formed, which took several steps and produced positive results, as the spread of Islamic banking increased by 21% as a result of these efforts, and the balance sheets of banks with Shariah Compliant finance products increased significantly.
Ishaq Dar stated that the government recently committed to developing Islamic financing products and that the related departments of the Ministry of financing and other affiliated ministries worked hard to make the promise a reality.
Furthermore, he stated that all obligations made in the federal budget 2023-24 will be met one by one in order to ensure long-term economic growth and social prosperity in the country.
