MANILA: The Philippines has moved a step closer to opening the country to the wide range of banking and other financial services available through Islamic banking and finance.
The move comes after the House of Representatives recently approved on second reading a proposed bill providing for the regulation and organization of Islamic banks in the Philippines.
In an emailed statement to Arab News, Congressman Henry Ong said the “eventual enactment of the (proposed) law would be one of the historic moments in Philippine banking history.”
The country’s first Islamic bank, according to the lawmaker, was created in 1972.
“With this imminent new law, there will be more Islamic banks not just for Mindanao but also for the rest of the country,” said Ong, who is chairman of the House Committee on Banks and Financial Intermediaries.
Parallel to this bill’s movement through Congress, the Philippine Stock Exchange has its Shariah index of stocks on the PSE where some 60 securities are listed.
Ong noted that the establishment of more Islamic banks, especially those based here in Southeast Asia and in the Middle East, will greatly benefit the 10 million-plus Filipino Muslims, many of whom are “unbanked.”
He pointed out that this is so as the proposed measure will make available particularly to Filipino Muslims, “a vast array of banking, lending, and investment products and services.
“Mindanao’s economy will reap great harvests because of this bill. Filipino Muslims in the Middle East and Southeast Asia would most likely be able to send more remittances to their families and friends. Businesses in Mindanao will have more financing options to grow,” Ong said.
“Upgrading and expanding Islamic banking and finance will help stimulate economic growth in the Bangsamoro Autonomous Region, as well as in Filipino-Muslim communities in Metro Manila and other urban areas nationwide,” Ong continued.
The lawmaker likewise emphasized said that aside from providing the people of Mindanao more banking options, Arab investors and bankers will have more reasons to participate in the growth of the Philippine economy.
“More Islamic banks means more direct investments, including investments by international Islamic banks especially those here in ASEAN, the Middle East, and even Africa,” he said.
Under the proposed bill, Islamic banking business refers to banking business with objectives and operations that do not involve interest (riba) which is prohibited by the Shari’ah and which conducts its business transactions in accordance with Shariah principles.
Section 3 of the bill also provides that the Central Bank’s Monetary Board may authorize the establishment of Islamic banks. It may also authorize conventional banks to engage in Islamic banking arrangements, including structures and transactions, through a designated Islamic banking unit within the bank.
Under prescribed rules and regulations, it may also authorize foreign Islamic banks to establish banking operations in the Philippines under any of the modes of entry provided under Republic Act No. 7721, as amended, otherwise known as “The Liberalizing of Entry and Operations of Foreign Banks in the Philippines.”
The Monetary Board may regulate the number of participants in the Islamic banking system, taking into account the requirements of the economy, the preservation of the stability of the system, and the maintenance of healthy competition.
The Central Bank shall exercise regulatory powers and supervision over the operations of Islamic banks.
The bill further mandates that Islamic banks shall be responsible in ensuring compliance with Shari-an principles. For this purpose, it shall constitute a Shariah advisory council composed of people who have knowledge or experience in Shariah and in banking, finance, and law.
Philippine Congress moves a step closer to expanding Islamic banking
Philippine Congress moves a step closer to expanding Islamic banking
- Establishment of more Islamic banks in Southeast Asia and the Middle East will benefit more than 10 million Filipino Muslims
- The Central Bank will exercise regulatory powers and supervision over the operations of Islamic banks
Pakistan rules out talks with Afghanistan, says more than 330 Afghan fighters killed in operations
- More than 330 Afghan fighters killed in operations
ISLAMABAD: Pakistan has ruled out talks with Afghanistan until there is an end to “terrorism” emanating from Afghan soil, officials said on Friday. The statement follows the killing of more than 330 Afghan fighters in cross-border skirmishes this week.
The latest clashes between the neighbors erupted after Pakistani airstrikes on Afghan territory last weekend triggered retaliatory attacks along the border on Thursday, escalating long‑simmering tensions over Pakistan’s claim that Afghanistan shelters Pakistani Taliban militants. Afghanistan denies this, saying Pakistan is deflecting blame for its own security failures.
Pakistani Information Minister Attaullah Tarar said his country had killed 331 Afghan fighters, destroyed over 100 posts and targeted 37 military locations across Afghanistan. Afghan officials have said more than 50 Pakistani soldiers have been killed and several Pakistan posts captured. Neither casualty figures nor battlefield claims by either side could be independently verified.
Meanwhile, Mosharraf Zaidi, Prime Minister Shehbaz Sharif’s spokesperson for foreign media, ruled out any talks with Afghanistan until Kabul addresses the issue, while the US expressed support for what it called Pakistan’s “right to defend itself” against attacks from Afghanistan’s Taliban rulers.
“There won’t be any talks, there is nothing to talk about ... Terrorism from Afghanistan has to end,” Zaidi told state-run Pakistan TV Digital, saying Islamabad would continue to target militant havens inside Afghanistan.
“Pakistan’s responsibility is to protect its citizens. If we know that there is a terrorist in point A and we know that there is a terrorist enabler at point A, we will find a weapon to land at point A and eliminate the threat.”
Zaidi said he did not expect Pakistan to deviate from this position: “We have clearly articulated what we are doing and what we plan on continuing to do and what it will take for us to stop doing what we are doing.”
He added: “And we will expect that both the international community and the regime in question, the Afghan Taliban, will come to their senses and will help reduce instability and disorder in this region.”
Pakistan is a major non-NATO ally of Washington, while the US considers the Afghan Taliban a “terrorist” group.
“The United States supports Pakistan’s right to defend itself against attacks from the Taliban, a Specially Designated Global Terrorist group,” Reuters quoted a State Department spokesperson as saying.
US diplomat Allison Hooker said on X she had spoken with Pakistan Foreign Secretary Amna Baloch on Friday.
The State Department spokesperson said Washington was aware of the escalation in tensions and “outbreak of fighting between Pakistan and the Afghan Taliban,” adding the US was “saddened by the loss of life.”
“The Taliban have consistently failed to uphold their counterterrorism commitments,” it said. “Terrorist groups use Afghanistan as a launching pad for their heinous attacks.”
Meanwhile, Afghan Taliban spokesperson Zabihullah Mujahid called for talks to resolve the crisis.
“We have always emphasized peaceful resolution, and now too we want the issue to be resolved through dialogue,” he said on Friday afternoon.
Asked what Pakistan desired, Tarar said: “Neutralizing the threat and ensuring that Pakistan is safe. Because for us, we’ve been good neighbors, we’ve been very friendly neighbors, we’ve been very, very generous neighbors. Our generosity, unfortunately, has often been seen as our weakness. So the objective, aim is to neutralize the threat and make Pakistan safe.”
He added it was too early to comment on a ceasefire as it was an evolving situation.
