NIEF calls for complete transition to Islamic banking by December 2027

KARACHI, Aug 05 (APP): The fourth National Islamic Economic Forum (NIEF), on Wednesday, called for the complete conversion of Pakistan’s banking system to Islamic principles, faster economic reforms, effective use of modern technology and greater employment opportunities for youth.

The speakers at NIEF 2026, organized by Saylani Welfare International Trust and Saylani School of Business and Islamic Leadership, agreed that the combination of Islamic finance, modern technology, youth skills and effective economic reforms was essential for placing Pakistan on the path to sustainable economic growth.

The conference, according to a statement issued here, in its unanimous resolution emphasized on thorough compliance of the country’s laws and regulatory requirements and complete transition of all banking institutions, without any exemption, to Islamic banking by December 31, 2027.

Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority Bilal Bin Saqib, addressing the conference virtually, said blockchain should not be viewed merely as crypto currency. “Blockchain protects ownership, makes records transparent and prevents fraud. It is a digital form of trust and accountability,” he said.

Terming Pakistan’s youthful population and millions of freelancers as the country’s valuable asset, Bilal Bin Saqib urged young Pakistanis to adopt artificial intelligence, blockchain and emerging technologies. He advised young people not to limit themselves to conventional degrees and to use technology to solve global problems.

Governor State Bank of Pakistan Jameel Ahmad, in his virtual address, said that the government and the central bank had adopted a clear strategy for transforming the banking system that would gradually move towards an interest-free financial structure.

Hybrid Sukuk had been introduced from April 16, 2026, while short-term Sukuk instruments had also been approved, he said, adding that Islamic banks had been provided alternatives to treasury bills.

Capacity building programs for bankers and Shariah scholars were under way and awareness campaigns on Islamic banking were being conducted at universities and religious seminaries, he said, appreciating Saylani Welfare International Trust for its services in social development, education, technology training and youth employment.

Deputy Governor State Bank Saleem Ullah, addressing the forum, said that Islamic banking now accounted for nearly 29% of the banking industry’s deposits and around 40% of financing. He said every new domestic government borrowing instrument issued from January 1, 2028, would be Shariah-compliant, while foreign borrowing would also follow Islamic principles wherever possible.

Founder and Chairman of Saylani Welfare International Trust Maulana Muhammad Bashir Farooq Qadri urged the government and theSBP to play a decisive role in ensuring that Pakistan’s banking system became completely interest-free from 2028.

The conference was also addressed by eminent religious scholar Mufti Muneeb-ur-Rehman, Chairman Association of Builders and Developers (ABAD) Hasan Bakhshi, Group Head Shariah Compliance Meezan Bank Ahmad Ali Siddiqui, Chairman Unilever Pakistan Amir Paracha, CEO Tabani Group Hamza Tabani and Chairman Saylani Education Board Afzal Chamdia.

Prominent representatives from the banking, corporate, religious, academic and social sectors attended the event. A panel discussion on cryptocurrency and digital assets was also held to promote awareness regarding their opportunities, regulation and responsible use. The forum concluded with presentation of shields to speakers and distinguished participants.