Federal Finance Minister Muhammad Aurangzeb has said that Pakistan has crossed the historic milestone of Rs 1 trillion in the issuance of domestic sovereign Sukuk, which is a significant step towards the promotion of the Islamic financial system in the country.
Addressing the ceremony of issuing Rs 1 trillion of domestic sovereign Sukuk in Islamabad, the Finance Minister said that the Islamic banking and Sukuk market is continuously stabilising, while investors’ confidence in financial products according to Sharia principles is also increasing.
Muhammad Aurangzeb said that the issuance of Sukuk has helped in extending the tenure of government loans and reducing financial costs. He termed this development as positive for the country’s economy.
The Finance Minister said that effective cooperation between the relevant institutions is necessary to further stabilize the Sukuk market. The government is committed to maintaining the achievements made in this sector and expanding the scope of Islamic finance.
He said that Islamic banking in Pakistan is continuously developing and the government is taking steps to increase investment opportunities in accordance with Sharia principles.
Stressing the need for better supervision and regulation in the financial sector, Muhammad Aurangzeb said that the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP) are being made more effective.
He said that along with adopting modern financial procedures, the government is also working on harmonizing Islamic banking with the digital system so that better facilities can be provided to investors.
The Finance Minister also appreciated the services of Mufti Muhammad Taqi Usmani in the promotion of Islamic banking. He said that Mufti Taqi Usmani has played an important role in the development of the Islamic financial system in Pakistan and its harmonization with the requirements of modern banking.
He expressed his determination that the government, with the cooperation of relevant institutions, will continue its efforts to promote Islamic investment and further strengthen the Sukuk market.
