SECP okays plan for Islamic financing

ISLAMABAD:

SECP approves a Strategic Action Plan to foster Islamic finance growth and eliminate Riba by 2028.The Securities and Exchange Commission of Pakistan (SECP) has approved a Strategic Action Plan 2024-2026 to facilitate the growth and development of Islamic finance in non-bank financial sectors. The plan was prepared by the SECP's apex committee, chaired by Mujtaba Ahmed Lodhi, Commissioner-SCD, and established in 2023 with representation from the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), SECP policy department heads, and industry experts.

This collaborative effort aims to create a comprehensive roadmap for the growth of Islamic finance, aligning with the recent 26th Constitutional Amendment, which mandates the elimination of Riba by January 1, 2028, according to a press release. The Strategic Action Plan seeks to enable Islamic finance across all regulated sectors under the SECP's purview by December 2026. Subsequently, a conversion plan and strategy will be developed to facilitate the transition of conventional financial institutions to Islamic financial institutions.