Karachi, Pakistan – Saleem Ullah, Deputy Governor of the State Bank of Pakistan (SBP), emphasized the need for Pakistan to fully adopt a comprehensive Islamic financial system beyond conventional banking alternatives. Speaking at the 8th International Conference on Islamic Banking and Finance (ICIBF 2024) hosted by the Institute of Business Management (IoBM) on Tuesday, he highlighted the significance of creating a truly Shariah-based alternative that adheres to Islamic principles both structurally and ethically.
“While efforts have mainly focused on providing Shariah-compliant versions of conventional banking products, it’s vital that we extend beyond this to embrace a genuine Shariah-aligned system,” he stated. “Achieving a full transformation of our banking ecosystem is essential for a robust Islamic economic system that fosters fairness, justice, and equity.” Saleem Ullah called for collaborative efforts across sectors to realize this vision for the greater good of society.
The conference was attended by leading figures in Pakistan’s banking and finance sectors, including presidents, CEOs, policymakers, and financial experts, to discuss the future of Islamic finance. This year’s ICIBF marks the first major international conference to address the recent constitutional amendment mandating the elimination of Riba (interest) in all banks by 2028. Former SBP Governor Dr. Ishrat Husain, a keynote speaker, underscored the transformative impact of this amendment, warning that inadequate strategies could hinder the progress of Islamic banking in the country.
Dr. Husain also criticized Pakistan’s tax system, calling it “arbitrary and regressive,” which penalizes honest taxpayers while encouraging evasion and fraud through fake receipts and other loopholes.
In his welcome address, IoBM President Talib Karim underscored the role of educational institutions in driving this transition toward Islamic banking. “As educators, it is our duty to guide our students—tomorrow’s leaders—towards reshaping financial institutions from traditional models to Islamic ones,” he said, acknowledging the pressing challenge of a skilled manpower shortage in the field.
ICIBF 2024 brought together a distinguished assembly of scholars, practitioners, and policymakers to explore the latest trends, challenges, and opportunities in Islamic finance. The event also featured insights from international speakers from Malaysia, Bahrain, the USA, Australia, the UK, and Saudi Arabia, joining both in-person and virtually, marking a significant step forward in the global discourse on Islamic finance.
