“Takaful – Islamic insurance – is on the rise in Pakistan and the indicators allude that the phenomenon is on the upward swing in terms of performance and efficiency. The five companies working in Pakistan have been making notable progress following a 12% growth rate annually,” said Professor Atiq Zafar, Head of Riphah Centre for Islamic Business of Riphah International University.
He was delivering a presentation during a seminar on ‘Takaful: Evolution and Current Status in Pakistan’ held at the Institute of Policy Studies, Islamabad.
Dr Mohammad Tahir Mansoori, director general, Shariah Academy, International Islamic University chaired the seminar.
The seminar was also attended by a group of insurance professionals and officials of the Ministry of Finance apart from a large number of finance professionals, Islamic scholars and students.
Quoting verses from the Quran and referring the verdict of Federal Shariat Court regarding the prohibition of interest, Zafar said that interest had widened the gap between the rich and the poor in the society.
Zafar deliberated upon the principles and contracts of Islamic system of finance which provided sound basis to avoid such crisis. He said that Islamic financial contracts prohibit interest, uncertain, unknown, doubtful and high risk, gambling, game of chance, sale of debt with debt, and combination of two mutually inconsistent contracts.
Published in The Express Tribune, September 30th, 2012.