SBP reiterates commitment to boost Islamic banking

In order to remove any ambiguity and doubt among the general public, the State Bank of Pakistan (SBP) has reiterated its commitment for promotion and development of Islamic banking in Pakistan.
Due to persistent efforts of SBP and the federal government, the share of Islamic banking in total deposits of the banking industry has surged to 12.8% as of June 30, 2015 and is consistently growing with a cumulative average growth rate of over 50% during the past 12 years. To-date, 5 full fledge Islamic banks, one Islamic banking subsidiary and 17 banks with dedicated Islamic banking branches are operating in the country with over 1,700 branches spread all over the country.
Under the close supervision of SBP, its Shariah Board has developed regulatory and supervisory framework to ensure Shariah compliance of Islamic banking based on rulings of its board. Further, it has developed Shariah compliant open market operations for managing liquidity of Islamic banking sector, which is quite unique in the Islamic world. SBP's Shariah Board has also approved structure of Government of Pakistan Ijara Sukuk, issued in the past and all such structures for future issues would be approved by SBP Shariah Board before their launch.