LAHORE - Punjab Minister for Higher Education Raja Yasir Humayon says there is an urgent need for the implementation of the Islamic Bank and Finance system in the country.

Addressing a two-day World Islamic Economic and Finance Conference (WIEFC) that began here on Saturday, he said for the best economic structure and environment, a system should be evolved based upon barren money, gifts, alms and charity.

The theme of this conference was “Adaptability and Dependability: Oriental and Empirical Innovations in Islamic Finance”. Prominent economists and bankers, both local as well as foreigners, were among the speakers.

The Minhaj University had organized the conference, second on the subject in the recent past.

Prominent economist Dr Slueman Shah said there is no doubt that Islamic Banking system is matchless; but, due to the fast urbanization the Islamic banking system is not achieving its desired goal. The Islamic Finance System is asset- based. Without creating asset- based system, the foundation of Islamic Finance Banking cannot reap the benefits. Innovation is the need of Islamic Banking System, he said.

Dr Toseef Azid, Professor of Economics at Qassim University Saudi Arabia, while addressing the conference said that the Islamic economic system is based on justice, According to the teachings of Islam all Muslims are brothers and Muslim Ummah is just like one body. If any part of the body feels pain the whole body feels it. The same rule can be applied in the debt market. He elaborated different cases where debt and its instruments are harmful for the society and where these will work for the protection and construction of Islamic community.

Dr Maryam Dikko, from Ahmedu Bella University Zaria, Nigeria, while speaking on corporate governance and Takaful stressed the need for the formation of corporate governance structure that could address the separation of shareholders and Takaful operators and participants.

Muhammad Ayub from Riphah International University Islamabad, while expressing his views on Linking Islamic Finance to Real Economy, said that the major strength of Islamic economy lies in the total ban on interest, Gharar/ short selling. He urged the Islamic finance scholars and the practitioners to ensure linking the finance with real business and said that it’s only possible when they confine themselves to financing the real business and production sectors and avoid all means of earning money from money. The conference will resume today to complete its remaining agenda at the same place.