Pakistan has potential to expand role in Islamic finance, says ICCD chief

Pakistan could widen its share of the global Islamic economy through new Shariah-compliant products, stronger regulation and professional skills, according to Yousef Hassan Khalawi, Secretary General of the Islamic Chamber of Commerce and Development (ICCD). Speaking at an SECP Talk Series event, he cited the country's large Muslim population, sizeable diaspora and pool of financial professionals as a solid base. Dawn reported that he urged the sector to take a forward-thinking stance, particularly in fintech.

SECP Commissioner Imtiaz Haider noted the growing role of Islamic finance in capital markets and the non-bank sector. He said 309 PSX-listed securities are Shariah-compliant, a 65 per cent share of the market worth Rs13.2 trillion. Islamic mutual fund assets have reached Rs2.2tr by June, up from Rs722 billion in June 2023, and 197 of the 389 mutual funds now meet Shariah criteria.

Mr Khalawi flagged listed Waqf structures as a way to pool small contributions for education, healthcare and infrastructure, and called agricultural finance a major untapped opportunity. He also described Shariah standardisation and capacity-building as hurdles, calling for experts who combine knowledge of Islamic law with modern finance. Mr Haider pointed to SECP-approved models for microfinance, housing and investment products.