The Securities and Exchange Commission of Pakistan (SECP) arranged a “High Power Session on Islamic Finance” on Friday to discuss potential issues, challenges, and opportunities related to Islamic finance within the regulated sectors of SECP.
The session was conducted by Chairman Shariah Advisory Committee of SECP and SBP Dr Mufti Irshad Ahmad Aijaz.
He discussed the advancement in the Islamic finance sector in the past few years, both in Pakistan and globally, and provided direction on how to achieve sustainable growth in this area.
He said that in order for Islamic finance to develop, we need to policies and products that are in line with Shariah, alongside conventional financing systems, and eventually move away from interest-based financing. Dr. Irshad responded to questions asked by SECP officials.
He also addressed topics such as Pakistan’s reliance on foreign funding, selling assets at a reduced price, peer-to-peer lending and venture capital, and products like Tawarruq and Bai Muajjal of Sukuk.
Representatives from several SECP departments were present at the session, including the Islamic Finance Department, Insurance Department, Securities Market Division and Specialized Companies division.