After this, in 2002, the first Islamic bank in the country, Meijan Bank was established. According to a report a few years ago, in 1314 branches of Islamic banks of Pakistan, there were 1016 billion rupees as asset and deposit of 872 billion rupees.
In 1950, Pakistan used its first use in Islamic banking.
The central bank of Pakistan, the State Bank of Pakistan (SBP), on Monday announced a five-year strategic plan for the Islamic banking industry. This is the third plan from SBP which is associated with Islamic banking. It has been told by Pakistan’s media that the objective of this scheme is to increase the share of assets of Islamic banks and increase the deposits in banking industry by 30%.
35% share
It has been told by the newspaper Dawn that in this plan for the year 2021 to 2025, Islamic banks will get 35% stake in the banking industry. 10 per cent will be held by Small and Medium Enterprises and 8 per cent in agricultural financing. At the same time, if you talk about the private sector, then these banks will also do the financing. If we talk about the present situation, the Islamic banking industry has held 17 per cent market share and 18.3 per cent shares in assets and deposits. This figure is from December 2020.
There are 5 Islamic banks in Pakistan
It has been said by the SBP that its effort is to bring Islamic banking to one third of the banking industry by the year 2025. According to SBP, Islamic banking is on priority in its priority. According to the State Bank of Pakistan, the Islamic banking industry has made rapid strides in the country’s banking system.
At present, there are 22 Islamic Banking Institutions in the country, out of which 5 are banks and 17 are traditional banks. These banks and financial institutions are providing products and services based on Sharia. The country has 3,456 branches and 1,638 Islamic banking windows spread across 124 districts of the country.
Islamic banking will be strengthened
Pakistan, being a Muslim country, has been trying to bring in a successful Islamic banking system for many years. Several steps have also been taken in this direction in the past. According to experts in Pakistan, the Islamic backing system is gradually becoming stronger. He says that this future is very bright in the country. Traditional banking has its roots in Pakistan since the time of independence i.e. 1947. The government of Pakistan is taking several steps to further strengthen the Islamic banking system.
20 percent growth within 12 years
In 1950, Pakistan conducted an experiment in which an attempt was made to convert the traditional banking system into Islamic. But it failed badly due to many reasons. In 1992, after the order given by the Supreme Court and the Federal Court of Pakistan, the traditional backing system was asked to be converted to Islamic.
After this, in 2002, the first Islamic bank in the country, Meijan Bank was established. According to a report a few years ago, in 1314 branches of Islamic banks of Pakistan, there was an asset of 1016 billion rupees and deposits of 872 billion rupees. Within 12 years, Islamic banks had achieved a growth rate of 15 to 20 percent. Also, 10 percent of the total banking network also came to them.
What is Islamic banking
Islamic banking is also called Sharia based finance or Islamic finance. This means a banking that will be based on Sharia law. There are two principles of Islamic banking, firstly, profit and loss will be shared by all and secondly, interest is restricted to those who take money and invest. Islamic banks earn profit through equity, ie the person who has borrowed will not have to pay interest to the bank but will have to share his profit.
3.5 trillion dollars of capital
At present, there are 300 Islamic banks and 250 mutual funds all over the world who are compelled to follow the principle of Islam. According to a Reuters report in the year 2016, between 2007 and 2017 the capital of Islamic banks has increased from $ 200 billion to two trillion dollars. It is expected to reach $ 3.5 trillion by this year. Many Muslim countries like Pakistan have a significant contribution in the growth of Islamic banks.
Also read: Before Ramadan, the mountain of inflation broke on Pakistanis… How will Eid… World Bank also warns
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