KARACHI: A delegation from Iraq’s Scientific Foundation for Financial Transactions, led by prominent scholars, announced plans on Tuesday to collaborate with the Pakistani banking sector by adopting its Shariah-compliant financing models during a visit to the Pakistan Stock Exchange (PSX), according to an official statement.
Pakistan has been actively transitioning toward Islamic finance since April 2022, after the Federal Shariat Court (FSC) ruled that the prevailing interest-based banking system violated Islamic principles, directing the government to fix the problem within five years.
The ruling came as the country faced significant economic challenges, ultimately bringing it closer to sovereign debt default in 2023 before securing a $3 billion Stand-By Arrangement from the International Monetary Fund (IMF) in July of that year.
Despite these hurdles, the PSX demonstrated remarkable resilience, with its benchmark KSE-100 Index reaching an all-time high of 81,459 points in September 2024, earning recognition as one of the world’s best-performing equity markets. The PSX also came to symbolize Pakistan’s economic recovery, attracting foreign delegations, most recently the Iraqi scholars.
“Our objective is to leverage Pakistan’s proven models of Islamic finance to benefit our own market,” the PSX statement quoted one of them as saying. “With 50 percent of Iraqi banks operating on Islamic principles and remarkable growth— from 200 billion dinars to a trillion dinars over the past six years— we see immense potential for collaboration in Islamic finance.”
PSX officials provided an overview of Pakistan’s capital market and highlighted the country’s evolving landscape of Islamic finance.
“We are thrilled to host our esteemed Iraqi counterparts and explore partnership opportunities,” PSX Managing Director Farrukh H. Sabzwari said. “By focusing on capacity building and product innovation, we are confident that our collaborative efforts will benefit both Pakistani and Iraqi capital markets.”
The visit is part of a series of high-level exchanges between Pakistan and Iraq, aiming to deepen bilateral cooperation across various sectors. The ongoing visit of the Iraqi scholars also marks a step toward expanding economic and financial collaboration, particularly in Islamic finance.
Iraqi scholars seek Islamic finance collaboration with Pakistan during stock market visit
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Iraqi scholars seek Islamic finance collaboration with Pakistan during stock market visit
- Half of Iraq’s banks operate on Islamic principles, with the sector boasting a value of a trillion dinars in six years
- Pakistan has been transitioning toward Islamic finance since a court ruling declared interest to be against Shariah
Pakistan demands ‘equitable’ climate finance for vulnerable states at UN forum
- Pakistan repeatedly suffers from deadly climate disasters, including floods this year that killed over 1,000 people during monsoon
- Pakistan minister stresses role of international cooperation, private sector engagement for environmental sustainability
ISLAMABAD: Pakistan’s Minister for Climate Change Dr. Musadik Malik on Saturday called for an “equitable, accessible” climate finance for vulnerable nations, saying that climate action must be treated as a shared global responsibility.
Malik was speaking at a high-level conference titled: “The Bottom Line: Why Tackling Environmental Degradation Is Critical to the Future of the Global Financial System” held on the sidelines of the United Nations Environment Assembly (UNEA) in Nairobi.
Pakistan has suffered repeated climate-inducted disasters frequently over the years. Devastating floods this year claimed over 1,000 lives in the country during the monsoon season. Super floods in 2022 cost the country an estimated $30 billion in damages.
“Federal Minister for Climate Change and Environmental Coordination Dr. Musadik Malik has stressed that environmental degradation poses systemic risks to the global financial system and called for more accessible and equitable climate finance for vulnerable countries,” state-run Associated Press of Pakistan (APP) reported.
Participants highlighted the importance of policy coherence, effective regulatory frameworks and whole-of-government approaches to create enabling conditions for sustainable finance.
Pakistan has been pushing for easy access and terms of financing for developing countries that suffer from climate change effects over the past few years at global events such as the Conference of the Parties (COP) and World Economic Forum.
Dr. Malik noted that countries contributing least to global emissions were among those facing the “most severe” impacts of climate change.
Pakistan contributes less than 1 percent to the total greenhouse gas emissions.
“The minister underscored the role of international cooperation and responsible private sector engagement in ensuring that financial stability and environmental sustainability reinforce each other,” the APP report said.
The summit brought together global leaders, policymakers, financial regulators and experts to discuss how governments are steering private finance toward pathways that strengthen economic and financial stability.
Discussions also focused on mobilizing private capital for high-impact sectors and integrating environmental risks into financial decision-making processes.
