ISLAMABAD  - Finance Minister Senator Ishaq Dar on Tuesday constituted a ten-member Steering Committee for the promotion of Islamic Banking, which would submit its recommendations by 31st December 2014.

The government has notified the constitution of a ten-member Steering Committee for the promotion of Islamic Banking with Saeed Ahmad, Actuary/ Banker as its Chairman. The terms of reference included to review previous official reports on Islamic Banking including: report of the Council of Islamic Ideology, report of “The Commission for Islamisation of Economy”, report of “Self Reliance Commission” prepared under the Ministry of Planning and the report of the Commission of the State Bank of Pakistan prepared in pursuance of the Judgment of the Supreme Court of Pakistan.

Similarly, the committee would formulate comprehensive policy framework for Islamic Financial System and would suggest practical steps needed to be taken to implement Shariah-based financial system. The committee would find out practical ways and means to maximise equity-based financing instead of the widespread debt-based system.

It would also propose solutions for Islamic secondary market/ money market for liquidity management. The committee would chalk out a road map and propose a time plan for progression of different phases of Islamic Banking. It would study international implications of converting conventional banking into Shariah-compliant banking. The committee would conduct an analysis of the possible legal obstacles in converting conventional banking into Shariah-compliant banking, and the changes required to remove these obstacles. It would review the existing research and training facilities available in the country for Islamic finance and suggest measures for further reinforcement and new initiatives in this regard.

The committee would chalk out procedure and process for effective monitoring, overview and supervision of above-mentioned terms.

The other members of the committee included Maulana Mufti Muneeb-ur-Rehman, Religious Scholar, Muhammad Imran Usmani, Religious Scholar, Dr Waqar Masood Khan, Secretary Finance, Munir Kamal, Banker, Afaq Khan, Banker, Irfan Siddiqui, Banker, Atif Bajwa, Banker, Mian Muhammad Idrees, Industrialist and Director, Islamic Banking Department, State Bank of Pakistan as its members. Other members may be co-opted by Steering Committee, if required.  The Committee will submit its recommendations by 31st December 2014 and the State Bank of Pakistan, Karachi will provide secretarial support to the Steering Committee.