IslamicFinance.de

The Director of the Islamic Banking Department of the State Bank of Pakistan (SBP), Saleem Ullah, has said that the mechanism for short-term liquidity instruments for Islamic banks is being evolved and the launch of these bonds is expected in the next six months. Currently, Islamic banks can only invest in three-year government ijara sukuk. Earlier, experts on Islamic banking and finance agreed the Islamic banks can invest in government activities and projects much like conventional banks but there is a need to create an underlying asset. Another expert said that while the industry has been partially successful in eliminating riba from banking transactions, it needs to introduce diversified products for those segments of the society, which want Islamic investment and financing.

Over the next two years, State Bank of Pakistan (SBP)'s purpose will be to amplificate the share of Islamic banking system from the existing seven percent to 12 percent.
Saleem Ullah, the director of the islamic department at SBP stated this at a ceremony of unveiling logo of World Islamic Finance Summit 2011. The organisers of the summit are: Publicitas Pvt Limited, IBD, SBP.