Karachi - Deputy Governor of State Bank of Pakistan (SBP) Saeed Ahmad has said that Islamic finance is all set to become a better alternative to the conventional banking.
He said this while addressing a ceremony on completion of ten successful years of “Raast Islamic Banking” programme of Bank of Khyber, said a press release issued here on Saturday. Congratulating Bank of Khyber management, Board of Directors and “Raast Islamic Banking” team, Saeed hoped that with continued demand on an accelerated basis for the Islamic banking in the country, Bank of Khyber would participate in the sector and reap benefits for all stakeholders including its shareholders. The Deputy Governor said that Islamic finance is one of the fastest growing segments of the global as well as domestic financial sector. “Given its global outreach, growing recognition as a prudent and stable system and ability to provide financial solutions for all business needs, Islamic finance is all set to establish itself as a better alternative to the conventional financial system having capacity to ensure financial stability and inclusive economic growth”. He told the audience that last year SBP allowed 3 more conventional banks to initiate Islamic banking operations whereas 2 conventional banks had recently announced conversion into full-fledged Islamic banks over the next 2-3 years.

“These highly positive market sentiments give me optimism that the industry would easily surpass the strategic plan target of 20 percent by 2020,” he added.
He said that the SBP has been at the forefront of all the key initiatives to develop and support the industry, both regulatory and promotional.
The Deputy Governor informed the audience about the five-year Strategic Plan for Islamic banking industry, a comprehensive Shariah Governance Framework, increased frequency of its Islamic banking certificate course offered by NIBAF and other initiatives taken by the central bank for the promotion of Islamic banking.
He highlighted the strong commitment demonstrated by the present government in promotion of Islamic banking and finance in the country in this regard the government had constituted a steering committee last year for the promotion of Islamic banking.