Pakistan’s financial regulatory body grants first Shariah-compliant certificates to two real estate trusts

A man sits outside a bank along a street in Rawalpindi on July 15, 2023. (AFP/File)
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Updated 25 August 2023
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Pakistan’s financial regulatory body grants first Shariah-compliant certificates to two real estate trusts

  • The development comes after a court instructed the state to comply with Islamic financial system
  • The recent development will help the two firms carry out lending activities under an interest-free system

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued the first-ever Shariah-compliant certificate to two real estate investment trusts (REITs), facilitating them to carry out all lending activity under an interest-free system, as stated in an official statement on Friday.

The development came after the country’s Federal Shariah Court issued a judgment earlier this year, directing the previous administration of Shehbaz Sharif to comply with the Islamic principle of interest-free financial transactions, based on profit and loss sharing.

Following the court order, the SECP issued its 2023 guidelines related to Islamic financial services while highlighting its intent to facilitate conventional institutions who wanted to embrace Shariah-compliant business models.

Since the issuance of the guidelines, several financial entities applied for certification to position themselves as Shariah-compliant companies in the market.

“The Securities and Exchange Commission of Pakistan (SECP) has issued the first-ever certificate of Shariah compliance to two real-estate investment trusts (REITs), namely Signature Residency REIT and Rahat Residency REIT,” the official statement said.

It added that Signature Residency was a close-end developmental trust with a fund size of Rs825 million and a four-year indicative life, adding it aimed to build apartments and retail units and generate income for investors by selling them to customers.

The SECP revealed Rahat Residency had a fund size of Rs1,650 million and an indicative life of five years.

“The issuance of Shariah compliance certificates to REIT developments is a significant step towards connecting the real estate industry with Islamic financial markets and providing Shariah-conscious investors with a regulated transparent investment alternative,” the statement added.

With the second-largest Muslim population in the world, many of Pakistani citizens are cautious about the religious dimension of their banking and financial transactions.

According to the World Bank, only 21 percent of the country’s adult population had a bank account in 2017, with 13 percent citing religious reasons for not having them.


‘Terrified’ Sydney man misidentified as Bondi shooter turns to Pakistan consulate for help

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‘Terrified’ Sydney man misidentified as Bondi shooter turns to Pakistan consulate for help

  • The man says he received death threats after his images were spread widely on social media
  • He sought consular help after relatives in home country began receiving alarmed phone calls

SYDNEY: A Sydney man said he had received death threats and was “terrified” to leave his home Monday after his photo was widely shared online as the gunman responsible for the Bondi Beach shooting.

A father and son duo opened fire on a Jewish festival at Australia’s best-known beach on Sunday evening, killing 15 people, including a child, and wounding 42 more.

Authorities have condemned the attack as an act of terrorism, though they have not named the two shooters — one killed at the scene, and the other now in hospital.

However, Australian public broadcaster ABC said the alleged assailant was Naveed Akram from the western Sydney suburb of Bonnyrigg, quoting an anonymous official, and other local media reported that police had raided his home.

Photos of a beaming man in a green Pakistan cricket jersey pinged across social media.

Some of the posts were shared thousands of times, drawing vitriolic comments.

But the photo was taken from the Facebook profile of a different Naveed Akram, who pleaded Monday for people to stop the misinformation in a video published by the Pakistan Consulate of Sydney.

“Per media reports, one of the shooters’ name is Naveed Akram and my name is Naveed Akram as well,” he said in the video.

“That is not me. I have nothing to do with the incident or that person,” he said, condemning the “terrible” Bondi Beach shooting.

“I just want everyone’s help to help me stop this propaganda,” he said, asking for users to report accounts that misused his photo, which he had shared in a 2019 post.

’ LIFE-THREATENING

The 30-year-old, who lives in a northwestern suburb of Sydney, told AFP he first heard around 9:30 p.m. on Sunday that he had been falsely identified as the shooter.

“I could not even sleep last night,” Akram told AFP by phone, adding he deleted all the “terrible” messages he got.

“I’m terrified. I could not go outside, like it’s a life-threatening issue, so I don’t want to risk anything... my family is worried as well, so it’s quite a hard time for me.”

He asked the Pakistan Consulate to put out the video because relatives in the country’s Punjab province were getting phone calls as well.

“It was destroying my image, my family’s image,” he said.

“People started to call them. They were worried, and they have told the police over there.”

The Pakistan native moved to Australia in 2018 to attend Central Queensland University and later did a masters at Sydney’s Holmes Institute.

Today he runs a car rental business, and he said Australia is “the perfect country.”

“I love this country. I have never had any safety issues here, like everyone is so nice, the people are so nice here,” Akram said.

“It’s only this incident that has caused me this trauma.”