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, Afghanistan border clashes kill 5, officials say
- Afghanistan and Pakistan trade blame for “unprovoked firing” along Chaman-Spin Boldak border
- Exchange takes place nearly a week after a fresh round of peace talks between neighbors failed
KABUL: Pakistan and Afghanistan exchanged heavy fire along their border late on Friday, officials from both countries said, killing at least five people amid heightened tensions following failed peace talks last weekend.
Afghan Taliban spokesman Zabihullah Mujahid said Pakistani forces launched attacks in the Spin Boldak district of Kandahar province.
His deputy Hamdullah Fitra told Reuters that shelling by Pakistan killed five people, including a Taliban member.
A spokesman for Pakistan’s prime minister said Afghan forces carried out “unprovoked firing” along the Chaman border.
“Pakistan remains fully alert and committed to ensuring its territorial integrity and the safety of our citizens,” spokesman Mosharraf Zaidi said in a statement.
The exchange came nearly a week after a new round of peace talks between the South Asian neighbors ended without a breakthrough, although both sides agreed to continue their fragile ceasefire.
The talks in Saudi Arabia last weekend were the latest in a series of meetings hosted by Qatar, Turkiye and Saudi Arabia to cool tensions following deadly border clashes in October.
At the heart of the dispute, Islamabad says Afghan-based militants have carried out recent attacks in Pakistan, including suicide bombings involving Afghan nationals. Kabul denied the charge, saying it could not be held responsible for security inside Pakistan.
Dozens were killed in October’s clashes, the worst violence on the border since the Taliban took power in Afghanistan in 2021.
