Participants underlined the need for awareness and penetration of Islamic banking and Takaful services across the country. ILLUSTRATION: JAMAL KHURSHID
The Islamic Banking Industry (IBI) is flourishing in Pakistan, despite the challenges faced in policymaking for the promotion and removal of misconceptions about its modalities among the masses, speakers agreed.
While speaking at the conference, Habib Bank Limited Islamic Banking Division Head of Product Development Faizan Ahmed Memon said that there are a lot of misconceptions regarding Islamic banking services among the masses, but people are reluctant to educate themselves about the Shariah-based banking system which is a much better alternative to the conventional or interest-based banking system.
He said that although Islamic banking has grown at an amazing rate in Pakistan, its pace is still slow keeping in view the Muslim population of the country, which reflects its low acceptability among consumers.
Memon urged the participants of the conference to switch to Islamic banking, which is completely free of Riba or interest.
Published in The Express Tribune, June 21st, 2013.
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The public is very much in favour of Islamic banking; but some of the conditions in the Islamic banks are not " Islamic" . When asked they quote rules which are imposed on them by the state bank . Why .
Call it by another name - paying back more than you borrow is an interest charge. If you feel more holy calling it something else - so be it.
Islamic Banking is not in line with islamic principles of finance. the manner in which it is practiced in Pakistan, it is merely a re-branding of conventional banking, I believe you dont have any idea how banks actually do work in Pakistan nor have you ever read their documentation in detail hence you are giving such statements. They advertise themselves as Islamic, halal source of financing and make absolute fools out of public.
Why should these bankers be ashamed? I find it rather confusing why the Pakistan population is not accepting this form of finance. To be so close minded to think that banking only exists due to interest, I wuold recommend go reading any book on finance.
As for Islamic Banking, it is an amazing industry, one which is according to the Sharia and can help and develop Pakistan all around. It should be made mandatory with other forms of banking, which do use interest, should be declared illegal.
these bankers should be ashamed of themselves, selling blatant lies to the public. there is no banking without interest!