LAHORE- Takaful, the Islamic mode of insurance, for being very transparent, is emerging globally as a very viable model and being used successfully as engine of growth in a number of Muslim countries.

This was stated by Chief Executive Officer Pak-Qatar Takaful Pervaiz Ahmad while speaking at the Lahore Chamber of Commerce and Industry on Saturday. LCCI Vice President Saeeda Nazar presented Address of Welcome while former Vice President Shafqat Saeed Piracha also spoke on the occasion. Pervaiz Ahmad said that Islamic mode of Banking and all its tools are fast gaining ground in Pakistan when compared to conventional mode of banking, though it is a highly untapped market as yet.

He said Islamic financing products such as Murabaha, Ijara, Musharaka and Islamic Export Refinance, etc., are catering to a diverse cross-section of the economy, including the Corporate, SME and Consumer sectors.

He informed the participants that Sudan was the first country which introduced Takaful in 1979 while in 1987 Malaysian government used Takaful as engine of growth by issuing First Takaful Act. He said that Takaful met such a big success in Malaysia that 60 per cent of the Takaful customers in that country are Chinese.

Pervaiz Ahmad said that Takaful is emerging globally a very viable model as it remained unaffected by the economic meltdown witnessed by the Western world.

Speaking on the occasion the LCCI Vice President Saeeda Nazar said that today more than two hundred and fifty Islamic financial institutions are operating world-wide from China to USA. Western banks through their Islamic units in U.K., Germany, Switzerland, Luxembourg etc. also practice Islamic banking.

She said that the basic principle of Islamic banking is the prohibition of Riba or interest, which has seldom been recognized as applicable beyond the Islamic world but many of its guiding principles have consciously or unconsciously been accepted. The majority of these principles are based on simple morality and common sense, which form the bases of many religions including Islam.