ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), a corporate legislative and financial regulatory agency, has issued a ‘concept paper’ to revive and modernize ‘waqf’ charitable endowments for Islamic social finance, it said on Monday.
In Islamic tradition, waqf charitable endowments, or religious donations, are made by Muslims for the benefit of the community. Historically, the instrument has funded education, health care and social welfare, supporting institutions like Al-Azhar and the Ottoman public works system.
Waqf remains an important player in the socio-economic fabric of the Muslim world and countries like Malaysia, Turkiye, and Indonesia have successfully adapted it to modern financial systems through regulatory frameworks, innovative governance models, and Shariah-compliant financial instruments.
But in Pakistan, the financial instrument remains underutilized due to outdated management practices and the lack of a robust regulatory framework, according to the SECP, which aims to develop modern and efficient corporate sector, insurance and capital markets in Pakistan.
“The concept paper proposes strategies to harness waqf for Islamic social finance, including reinvigorating the waqf institution, enabling the establishment of waqf in corporate structures as waqf companies, and developing Islamic instruments and financial services products for such companies,” the regulator said.
The proposals aim to improve efficiency, complete the Islamic finance ecosystem, and create social impact in Pakistan, according to the SECP. The suggested pathway to transform waqf into a dynamic, sustainable and impactful institution for socio-economic development will be deliberated and discussed with key industry stakeholders before initiating the required regulatory interventions.
It noted that the concept paper included various options, such as amending provincial waqf laws and other regulations, to provide for waqf companies in order to address concerns pertaining to its jurisdiction and legal considerations.
“It is expected that the revival and modernization of waqf will enable sustainable Islamic social finance institutions, thereby helping achieve the objective of shared prosperity by making resources available for social and welfare projects,” the SECP added.
Pakistan regulator moves to reinvigorate ‘waqf’ charitable endowments for Islamic social finance
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Pakistan regulator moves to reinvigorate ‘waqf’ charitable endowments for Islamic social finance
- In Islamic tradition, waqf charitable endowments, or religious donations, are made by Muslims to benefit the community
- Historically, the instrument has funded education, health care and social welfare, supporting institutions like Al-Azhar
World Bank president in Pakistan to discuss development projects, policy issues
- Pakistan, World Bank are currently gearing up to implement a 10-year partnership framework to grant $20 billion loans to the cash-strapped nation
- World Bank President Ajay Banga will hold meetings with Pakistan Prime Minister Shehbaz Sharif and other senior officials during the high-level visit
ISLAMABAD: World Bank President Ajay Banga has arrived in Pakistan to hold talks with senior government officials on development projects and key policy issues, Pakistani state media reported on Sunday, as Islamabad seeks multilateral support to stabilize economy and accelerate growth.
The visit comes at a time when Pakistan and the World Bank are gearing up to implement a 10-year Country Partnership Framework (CPF) to grant $20 billion in loans to the cash-strapped nation.
The World Bank’s lending for Pakistan, due to start this year, will focus on education quality, child stunting, climate resilience, energy efficiency, inclusive development and private investment.
"World Bank President Ajay Banga arrives in Pakistan for a high-level visit," the state-run Pakistan TV Digital reported on Sunday. "During his stay, he will meet Prime Minister Shehbaz Sharif and other senior officials to discuss economic reforms, development projects, and key policy issues."
Pakistan, which nearly defaulted on its foreign debt obligations in 2023, is currently making efforts to stabilize its economy under a $7 billion International Monetary Fund (IMF) program.
Besides efforts to boost trade and foreign investment, Islamabad has been seeking support from multilateral financial institutions to ensure economic recovery.
“This partnership fosters a unified and focused vision for your county around six outcomes with clear, tangible and ambitious 10-year targets,” Martin Raiser, the World Bank vice president for South Asia, had said at the launch of the CPF in Jan. last year.
“We hope that the CPF will serve as an anchor for this engagement to keep us on the right track. Partnerships will equally be critical. More resources will be needed to have the impact at the scale that we wish to achieve and this will require close collaboration with all the development partners.”
In Dec., the World Bank said it had approved $700 million in financing for Pakistan under a multi-year initiative aimed at supporting the country's macroeconomic stability and service delivery.
It followed a $47.9 million World Bank grant in August last year to improve primary education in Pakistan's most populous Punjab province.
