By Commerce Reporter
Lahore Chamber of Commerce and Industry, in collaboration with Faysal Bank, organized a seminar on Islamic Banking, to educate the business community on the principles and benefits of Islamic banking and its potential to revolutionize the financial sector.
President Mian Abuzar Shad, Faysal Bank President Yousaf Hussain, SAARC Chamber Vice President Mian Anjum Nisar, GM Faysal Bank Agha Mehdi Raza, Regional Manager Zohair Amjad Dar, Amer Waheed Chishti spoke on the occasion and shed light on the various aspects of Islamic Banking. LCCI Executive Committee Members Syed Salman Ali, Karamat Ali Awan and Aamir Ali were also present.
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The experts said that Islamic banking in Pakistan has witnessed significant growth since its inception, emerging as a robust alternative to conventional banking systems. The State Bank of Pakistan has played a pivotal role in fostering this sector by introducing regulatory frameworks and ensuring compliance with Islamic financial laws.
Faysal Bank President Yousaf Hussain shared that his bank is leading Islamic Banking in Pakistan and currently operates 850 branches across Pakistan and aims to expand its network to 900 in the near future. He reaffirmed Faysal Bank’s commitment to leading the transition towards a fully Shariah-compliant banking system. He talked about the importance of eliminating interest-based transactions in accordance with Islamic teachings and urged the Lahore Chamber to support initiatives that educate the business community about interest-free banking.
LCCI President Mian Abuzar Shad lauded the State Bank of Pakistan’s proactive role in promoting Islamic banking. He said that six Pakistani and six foreign Islamic banks are currently operating in the country. According to 2024 data, Islamic banks collectively operate over 5,000 branches, serving approximately 16.7 million account holders, with total deposits amounting to PKR 7,268 billion—representing 24% of the banking sector’s total deposits. Islamic financing has also gained significant traction, reaching PKR 3,504 billion, which accounts for 29% of total banking sector financing.
He further said that Pakistan’s Federal Shariat Court has declared the interest-based economic system as un-Islamic and has directed the government to transition towards a completely interest-free banking system by December 2027. The court has instructed authorities to ensure that all banking transactions and loans comply with Islamic principles.
Mian Abuzar Shad reaffirmed LCCI’s dedication to supporting this transition and stated that the chamber has been actively organizing awareness sessions in collaboration with financial institutions. He noted that such initiatives help educate the business community on the principles of Islamic banking and financing, enabling them to make informed financial decisions. The seminar provided valuable insights into the differences between conventional and Islamic banking, equipping LCCI members with knowledge on Shariah-compliant financial solutions.
SAARC Chamber Vice President Mian Anjum Nisar, while addressing the seminar, emphasized the vital role of Islamic banking in Pakistan’s economic landscape. He stated that shifting towards a fully Shariah-compliant banking system is not just a religious obligation but also an economic necessity for sustainable growth. He highlighted that Islamic banking offers a stable and ethical financial system that minimizes risks associated with interest-based transactions. Mian Anjum Nisar urged businesses to adopt Islamic financial solutions and stressed the need for more awareness campaigns to educate entrepreneurs and investors about the benefits of interest-free banking. He also appreciated the collaborative efforts of LCCI and Faysal Bank in promoting this important cause.
