Scholars urge swift shift to Islamic system

The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, said on Tuesday that Pakistan's foreign exchange reserves have climbed from $3 billion to $11 billion, largely due to rising remittances from freelancers and overseas workers. Speaking at the "Islamic Digital Economy" conference hosted by Saylani Welfare International Trust, Ahmed noted that inflation had dropped to 0.3%, its lowest in 50 years, and the policy rate had halved to 11% since peaking in 2022. He added that the trade deficit has narrowed, and Pakistan has repaid $100 billion in foreign debt since 2022.

Ahmad praised Saylani's contributions to economic development and IT education. He reported over 8,000 Islamic banking branches now operate in Pakistan, with one-fourth of all deposits managed under Islamic principles. Pakistan, he said, was recently recognised by a Malaysian body as having the world's best central bank for Islamic banking efforts.

Prominent cleric Allama Raghib Hussain Naeemi reaffirmed the Islamic Ideological Council's support for a complete transition to Islamic banking by 2027, as directed by the Federal Shariat Court. He called for integrating Hajj and Zakat funds within Islamic banking and highlighted the rapid growth of e-commerce and digital currencies, urging a structured framework for both.

Mufti Muneebur Rehman warned that time is running out for banks to comply with the court's order to eliminate interest by 2027. He criticised the government for its continued involvement in interest-based practices and urged action-oriented conferences.