Pakistan to launch Shariah-compliant certificates worth $178.6 million this month

Pakistan’s State Minister for Finance Ali Pervaiz Malik speaks during a session of National Assembly in Islamabad, Pakistan on September 3, 2024. (Ali Pervaiz Malik/Facebook/File)
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Updated 11 September 2024
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Pakistan to launch Shariah-compliant certificates worth $178.6 million this month

  • State minister highlights government’s commitment to promoting Islamic banking 
  • Central bank has set target to increase Pakistan’s Islamic banking share to 35% by 2025

ISLAMABAD: Pakistan’s State Minister for Finance Ali Pervaiz Malik said on Tuesday new Shariah-compliant certificates worth $178.6 million would be launched this month to facilitate lending activity under an interest-free system, state-run media reported.

A Shariah-compliant certificate is a document issued by the Federal Shariah Court verifying that a financial product or transaction conforms to Islamic principles and laws. Last year, the Securities and Exchange Commission of Pakistan (SECP) issued the first-ever Shariah-compliant certificate to two real estate investment trusts. In April, it also issued a license to the first Shariah-compliant brokerage house in Pakistan.

“In response to the Calling Attention Notice, Minister of State for Finance Ali Pervaiz Malik said new Shariah-compliant certificates worth $178.6 million will be launched this month,” Radio Pakistan said on Tuesday, as the minister briefed the National Assembly about the government’s “commitment to promoting Islamic banking” in the country. 

Earlier this week, Pak-Qatar Family Takaful Limited (PQFTL), a leading Pakistani Shariah-compliant family insurance provider, introduced an instant withdrawal facility for its customers, which would allow participants to withdraw partial funds in case of emergencies with ease and instant access through the company’s mobile app or its online portal. 

Last year, Pakistan’s central bank set a target to increase the share of Islamic banking in the country to 35% by 2025.

In 2021, the Federal Shariat Court, which determines whether Pakistani laws comply with Islamic law, directed the government to eliminate interest from the country’s banking system by 2027. 

At present, the share of Islamic banking in the overall commercial banking system in the country is 20%.

Pakistan has six full-fledged Islamic banks offering a wide range of products and the annual growth rate of Islamic banks’ assets and deposits has been 25% and 22% respectively over the last five years, according to central bank data.


Pakistan says 34 militants killed in counterterror operations in Balochistan, KP this week

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Pakistan says 34 militants killed in counterterror operations in Balochistan, KP this week

  • Pakistan military says 26 militants killed in separate operations in Khyber Pakhtunkhwa this week
  • Eight other militants were gunned down in southwestern Balochistan’s Zhob district, says military 

ISLAMABAD: Pakistani security forces killed 34 militants this week in the southwestern Balochistan and northwestern Khyber Pakhtunkhwa (KP) provinces bordering Afghanistan, the military’s media wing said on Wednesday amid a surge in militant attacks in the country. 

The Inter-Services Public Relations (ISPR), the military’s media wing, said security forces carried out a series of “high tempo intelligence-driven operations” this week in the two provinces. It said 26 militants belonging to the Pakistani Taliban or the Tehreek-e-Taliban Pakistan (TTP) outfit were killed while eight militants were killed in Balochistan in the operations. 

In the first counterterror operation on Tuesday, Pakistani forces targeted a TTP militant who was trying to enter the country in North Waziristan through the Pakistan-Afghanistan border, the ISPR said. Three TTP militants were killed in a second counterterror operation in Lakki Marwat district, the military added. 

In the third counterterror operation, 10 TTP militants were killed in Bannu district while 12 others were gunned down in North Waziristan in another separate operation, the ISPR said. 

“During the fifth engagement, own troops conducted an intelligence-based operation in the general area of Sambaza, Zhob District,” the military’s media wing said in a statement.

“After an intense fire exchange, eight terrorists belonging to Fitna Al Hindustan were successfully neutralized.”

Pakistan’s military uses the terms “Fitna Al-Khwarij” for the TTP and “Fitna Al Hindustan” for separatist militants in Balochistan. Islamabad alleges these militant groups are supported by India, a charge New Delhi has always denied. 

The ISPR said security forces retrieved weapons and ammunition from the militants in Balochistan’s Zhob district, adding that they were involved in “terrorist activities” in the area.

“The security forces of Pakistan remain resolute and unwavering in their commitment to defend the nation’s frontiers,” the ISPR said. 

The counterterror operations take place amid surging tensions between Pakistan and Afghanistan. Islamabad said it carried out strikes on alleged militant camps in Afghanistan on Saturday night, killing over 100 militants. 

Afghanistan said the attacks violated its territorial sovereignty, accusing Islamabad of killing and wounding dozens of civilians. 

Islamabad alleges militants based in Afghanistan are responsible for surging militant attacks inside Pakistani territory. Afghanistan rejects these allegations and urges Pakistan to focus on its security challenges instead of blaming Kabul.