Pakistan issues license to first Shariah-compliant brokerage house

This picture taken on February 4, 2010 shows a Pakistani stock broker looking at the latest share prices on a digital board during a trading session at the Karachi Stock Exchange (KSE), the country's largest stock market, in Karachi. (AFP/File)
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Updated 09 April 2024
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Pakistan issues license to first Shariah-compliant brokerage house

  • The new rules aim to provide brokerage houses options to move toward Shariah-compliance
  • The move is likely to bring new entrants to the brokerage industry and facilitate existing brokers

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016 and issued license to the first Shariah-compliant brokerage house in Pakistan, it said on Tuesday.

The new regulations are aimed at providing brokerage houses, which intend to offer Shariah-compliant services, various options that include establishment of separate subsidiaries, offering these services through window operations or converting to a fully Shariah-compliant brokerage house.

“Such securities brokers shall obtain certificate of Shariah-compliant company in compliance with the Shariah Governance Regulations, 2023, and adhering to the Guidelines for Offering Islamic Financial Services issued by the SECP,” the regulator said in a statement.

“The Regulations also require such brokers to implement appropriate internal controls and adopt policies to address any conflict of interest and protect customer interest.”

In continuation of the aforementioned regulatory amendments, the SECP said it had granted a license to ZLK Islamic Financial Services (Private) Limited, marking it as the first fully Shariah-compliant brokerage house.

“It is anticipated that the new regulations will streamline entry process for new entrants in the brokerage industry and facilitate existing brokers desiring to offer Islamic Financial Services,” it said.

“This will be instrumental in promoting sustainable growth in the market, encouraging long-term investments in key economic sectors and bolstering financial inclusion in the country.”


Punjab expands Pakistan-India Wagah border arena with museum, partition-themed park

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Punjab expands Pakistan-India Wagah border arena with museum, partition-themed park

  • The border crossing, near eastern city of Lahore, is the primary land route between Pakistan and India and one of the most recognizable symbols of their often-tense relations
  • The site is best known for its daily flag-lowering ceremony, a choreographed military ritual performed by border forces from both countries that draws thousands of spectators

ISLAMABAD: Maryam Nawaz, chief minister of Pakistan’s Punjab province, on Thursday inaugurated the newly constructed arena at Wagah border cross between Pakistan and India, which includes a museum and a partition themed park.

The Wagah border crossing, located near the eastern city of Lahore, is the primary land route between Pakistan and India and one of the most recognizable symbols of the often-tense relationship between the two neighbors. It serves as a key point for prisoner exchanges and limited movement of travelers, while remaining tightly regulated due to security considerations.

The site is best known for its daily flag-lowering ceremony, a choreographed military ritual performed by border forces from both countries that draws thousands of spectators. Over the years, the ceremony has evolved into a popular tourist attraction, blending displays of nationalism with public spectacle and making it one of Pakistan’s most visited landmarks, which connects with India’s Attari.

Flanked by military officials, CM Nawaz visited the crossing and inaugurated the new arena, with its seating capacity increased from 7,500 to 25,000 spectators, the state-run Radio Pakistan broadcaster reported. The chief minister also visited the martyrs’ monument and offered her respects.

“In addition to the arena’s expansion, several new constructions have been added at the Joint Check Post Wagah. These new developments include a theme park depicting the partition of the Subcontinent, featuring models of a railway station, military equipment and a Martyrs’ Memorial,” the broadcaster reported.

“A Pakistan Museum has also been established within the arena, showcasing the country’s history and culture from the Freedom Movement to the present day.”

In August 1947, Britain divided the Indian Sub-continent, its former colony, into two countries — Hindu-majority India and Muslim-majority Pakistan.

Excitement over independence was quickly overshadowed by some of the worst bloodletting that left up to 1 million people dead as gangs of Hindus and Muslims slaughtered each other.

Creating two independent nations also tore apart millions of Hindu and Muslim families in one of the world’s largest peacetime migrations, which displaced at least 15 million people.

The fate of Kashmir, then a princely state, was left undecided. The Himalayan territory continues to remain a flashpoint in relations between the neighbors, who have fought multiple wars over it.