Steps taken to promote Islamic Finance: Dar

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ISLAMABAD, Dec 13 (APP): Finance Minister Mohammad Ishaq Dar
here on Tuesday said the government was taking structured policy
actions to promote Islamic Banking in the country.

In this connection, the Finance Ministry has issued notifications constituting four sub-committees for promotion and facilitation of Islamic Banking in the country.

The terms of reference of the sub committees were also approved and issued, said a statement issued here.

The sub committee on legal and regulatory framework will be chaired by the Governor State Bank of Pakistan. It has representation of various commercial banks, shariah scholars, ministries of Law and Finance.

The TORs of the committee include fast track adoption of accounting and auditing organization for Islamic financial institutions and Islamic financial services board standards for Islamic financial institutions (IFIs) and encourage conventional banks with large Islamic banking operations to convert into full fledged Islamic banks.

It has representation of the Banks, Finance Division, Shariah Scholars and Heads of Revenue Authorities of all Provinces.

The committee will advise Federal Board of Revenue to provide tax neutrality for Islamic financial institutions and review tax related matters of Islamic banking subsidiaries of conventional banks and will make it a competitive business model.

The sub committee on capital market will be chaired by the Chairman, Securities and Exchange Commission of Pakistan and has representation of banks, shariah scholar, Pakistan Stock Exchange
and Finance Division.

The committee will promote culture of Islamic finance research and development, set up multi-stakeholders’ forum-Islamic finance association, introduce educational reforms and training and capacity
building of designated focal persons in government departments.