Pakistan Emphasizes Role of Islamic Finance in Achieving Macro-Economic Stability
Pakistan's Finance Minister, Senator Muhammad Aurangzeb, has underscored the significant potential of Islamic finance and Islamic capital markets in helping the country achieve macroeconomic stability and drive sustainable growth. During a recent conference, he highlighted the government's commitment to developing a robust Islamic capital market, emphasizing its importance in mobilizing resources for key sectors while upholding ethical principles.
The 2nd International Islamic Capital Markets Conference & Expo 2024, co-hosted by AAOIFI and IsDBI in partnership with the Pakistan Stock Exchange, brought together prominent figures in Islamic finance. Presentations and discussions focused on the growth of Islamic finance in Pakistan, emphasizing its role in driving inclusive and sustainable economic growth. The event showcased Pakistan's progress in Islamic finance, with 56% of the Pakistan Stock Exchange's market capitalization and 48% of assets under management of mutual funds being Shariah-compliant.
The finance minister underscored the government's commitment to transforming the financial system based on Shariah principles, noting that Islamic instruments such as sukuk, equity funds, and Shariah-compliant investment vehicles can attract investment while reducing reliance on interest-based borrowing. The conference highlighted the need for an economic system that aligns with Islamic values and supports inclusive growth, recognizing that Islamic finance can mobilize resources for critical sectors, including infrastructure development and poverty alleviation.
Keynote speakers at the conference included Dr. Sami Al Suwailem, Acting Director General of the Islamic Development Bank Institute, and Dr. Emomotimi Agama, Chairman of the Securities and Exchange Commission of Nigeria. They emphasized the importance of Islamic finance as a tool for responsible investing and its potential to promote sustainable and inclusive economic growth.
With the Pakistan Stock Exchange's continued commitment to expanding Shariah-compliant securities and the government's plans to develop a robust Islamic capital market, Pakistan is poised to enhance its position as a leader in the Islamic finance sector. The conference marked an important step towards unlocking the potential of Islamic finance in driving Pakistan's economic growth and development.
