Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries

This photo taken on July 17, 2018 shows a Pakistani currency dealer counting US dollars banknotes at a currency exchange shop in Karachi. (AFP/File)
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Updated 20 May 2025
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Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries

  • SECP has outlined phased approach encouraging institutional investors to engage with Shariah-compliant brokers
  • Islamic financial institutions being urged to channel takaful, investment activities through specialized intermediaries

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) is proposing new measures aimed at strengthening the presence and operations of Shariah-compliant intermediaries within the capital market, the regulator said in a statement this week.

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027. Following the order, the government and the State Bank have taken several measures ranging from changing laws to issuing sukuk bonds to replace interest-based treasury bills and investment bonds.

However, documents seen by Arab News earlier this year showed Pakistan’s government had failed to achieve a target set by the central bank to increase the share of Islamic banking deposits in the country by 50 percent by January this year.

“The paper proposes a phase-wise approach for Shariah-compliant institutional investors to route their business through Shariah-compliant brokers based on a plan to be prepared by their respective boards of directors,” the SECP said about the latest proposal. 

“The paper encourages Islamic financial institutions, including providers of Islamic window services, to utilize Shariah-compliant intermediaries for takaful and investment purposes in situations where they are not obligated to do so.”
 
Other proposed measures include creating a specific category for Shariah-compliant intermediaries for greater visibility on the Centralized Gateway Portal and a dedicated list of Shariah-compliant asset management companies on EMLAAK Financials, Pakistan’s first digital mutual fund aggregator. The platform brings together multiple Asset Management Companies (AMCs) and their mutual funds under one roof. It is a venture of ITMinds Limited, a wholly owned subsidiary of the Central Depository Company of Pakistan (CDC).

In order to facilitate Roshan Digital Account (RDA) clients, creating a separate category of Shariah-compliant intermediaries on the websites and mobile apps of Islamic banks would also be explored in coordination with relevant stakeholders, the SECP said.


Bahraini commander witnesses Pakistan Navy passing-out parade in Karachi

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Bahraini commander witnesses Pakistan Navy passing-out parade in Karachi

  • Rear Admiral Ahmed Mohamed bin Ali says it is a matter of immense pleasure for him to review commissioning of personnel at his alma mater
  • The training you have received has prepared you to step into a challenging yet deeply satisfying career, he tells young officers, midshipmen

ISLAMABAD: Rear Admiral Ahmed Mohamed Ebrahim Al bin Ali, commander of Royal Bahrain Naval Force, witnessed passing-out parade of Pakistan Navy’s 124th Midshipmen and 32nd Short Service Commission Course in Karachi, where he spoke with the newly inducted officers.

The passing-out parade was held at the Pakistan Naval Academy, at which Commandant Commodore Zia-ur-Rehman congratulated 90 midshipmen and 38 cadets who had completed short service commission after going through academic and training phases.

In his address, Rear Admiral Ali said it was a matter of immense pleasure for him to review the commissioning of personnel at his alma mater, the Pakistan Naval Academy, which he had joined as a cadet in February 1983.

“You must be confident and self-assured that you have been trained at one of the best naval academies of the region. The training you have received at Pakistan Naval Academy has prepared you to step into a challenging yet deeply satisfying career,” he told the young officers and midshipmen.

“It has equipped you with essential military and academic skills and you should spare no effort to build up on these to achieve excellence in your professions.”

Pakistan armed forces have long been training cadets and officers from friendly countries. Currently, the Pakistan Naval Academy is training future officers from Bahrain, Djibouti, Iraq, Sri Lanka and Turkiye.

The Bahraini commander said that being here as the chief guest had taken him back to yesteryears and he would have flashbacks of the familiar sounds and aura of this naval academy.

“I cannot help but marvel at the wonderful transformation that has taken place since my days,” he said.

Pakistan and Bahrain have maintained close diplomatic, security, trade and defense relations and have undertaken joint training and security initiatives, besides regular high-level exchanges.

Bahrain’s Read Admiral Ali met Pakistan Naval Chief Admiral Naveed Ashraf earlier this week, according to Pakistan Navy. They discussed matters of mutual interest, regional maritime security and avenues for bilateral naval cooperation.

Earlier in Sept., Pakistan and Bahrain agreed to enhance cooperation in naval training and regional maritime security operations. During the same month, the Bahraini Chief of Defense Staff Lt. Gen. Thiab Saqer Abdulla Al-Nuaimi met with Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu and expressed Bahrain’s interest in learning from the PAF’s experience in multi-domain operations.