By Our Correspondent
KARACH: The AlBaraka Forum for Islamic Economy, in collaboration with the Islamic Chamber of Commerce and Development (ICCD) and with the platinum partnership of Al Baraka Bank Pakistan, successfully concluded the 4th AlBaraka Forum Regional Conference on January 28th, 2024 at Marriott Hotel, Karachi, Pakistan, under the theme “Sukuk for Sustainable Development: International Best Practices”. This landmark event highlighted the transformative role of Islamic finance, particularly Sukuk, in driving sustainable economic growth.
The conference was honored by distinguished speakers including Mr. Saleem Ullah, Deputy Governor, State Bank of Pakistan, H.E. Mr. Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan, Honorable Mr. Justice Syed Mansoor Ali Shah, Senior Puisne Judge of the Supreme Court of Pakistan, and other key figures from the financial and development sectors. These leaders shared invaluable insights into the utilization of Sukuk as a robust tool for funding sustainable development projects.
Mr. Ahsan Iqbal, Federal Minister for Planning, Development & Reform, and Mr. Zafar Masud, Chairman of the Pakistan Banks’ Association, were the chief guests who delivered their keynote address through video messages.
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“Sukuk represents more than just financial instruments; they embody a commitment to sustainable and ethical development that resonates deeply with our values. This conference has highlighted the profound impact that Sharia-compliant finance can have on a global scale, offering innovative solutions for pressing economic and environmental challenges. We are inspired by the potential of Sukuk to fundamentally transform investment landscapes and drive meaningful change, ensuring financial practices that are not only profitable but also principled,” stated H.E. Mr. Yousef Hassan Khalawi, Secretary General of the Albaraka Forum for Islamic Economy during his welcome remarks.
H.E. Mr Muhammad Atif Hanif, CEO AlBaraka Bank Pakistan, also spoke on the subject of evaluation of sovereign sukuk to finance the state budget and on empowering SMEs.
The discussions at the event highlighted Sukuk’s pivotal role in financing environmentally and socially responsible projects, such as renewable energy and green infrastructure, aligning profitability with ethical investment. The conference addressed regulatory and legal frameworks affecting global Sukuk issuance and highlighted successful international case studies, offering practical insights and replicable practices.
The session also spotlighted the landmark decision by Pakistan’s Supreme Court to move towards a fully Islamic banking system, which sets a precedent for other nations considering similar reforms.
A video on the “Reality of the Sustainable Sukuk Market Globally” by the AlBaraka Forum was played that gave an insight into the origin of Sukuk in Muslim societies during their golden period and how today it has evolved as a major global financial product. The video also highlighted the successful issuance of Ijarah Sukuk by the Government of Pakistan amounting to 3.25 tr in the domestic market.
The event further facilitated productive dialogues on the challenges and opportunities in the Sukuk market, including the need for more standardized structures and greater transparency. The discussion culminated in actionable recommendations for advancing the role of Sukuk in sustainable finance.
Ms. Aalia Jafar, Director of International Relations at the Islamic Chamber of Commerce and Development, closed the conference with remarks that underscored the commitment of the AlBaraka Forum to fostering innovation and ethical practices in Islamic finance.
