Islamic Finance fully supported by the Government: Dar

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ISLAMABAD, Nov 18 (APP): Finance Minister Senator Mohammad Ishaq Dar on Wednesday said the Government was committed to promote Islamic finance ever since it assumed office and that he was pleased to learn the progress made by the Steering Committee on
Promotion of Islamic Banking.
The minister stated this while attending the meeting of the Steering Committee at the State Bank of Pakistan in Karachi.On this occasion the Minister listened to issues raised by
Steering Committee members pertaining to Taxation and Regulatory
framework and promised to look into issues faced by Islamic banks.
He assured that the Government will give Islamic banks
priority in raising project related financing.
On the importance of Recovery Act for encourage lending, it
was stated that the bill is in the National Assembly and it was
expected that after its passage the financing of the real economic
activities will increase.
The Minister also appreciated the efforts of Deputy Governor
SBP Saeed Ahmed to motivate conventional banks who have substantial
Islamic banking business to establish an Islamic banking subsidiary.
For this purpose the initial minimum capital requirement has
been reduced to Rs 6 billion from PKR 10 billion.
In order to facilitate good coordination between the Steering
Committee, SBP and Ministry of Finance, Finance Minister agreed to
have a dedicated person in his team in the Ministry.
Such focal person will have direct access to the minister to
highlight issues faced by Islamic banks.
The Federal Minister also declared the formation of an
Implementation Committee and expressed the hope that Implementation
Committee will work as dedicatedly as was done by the Steering
Committee.
The meeting was also attended by the Governor SBP Ashraf
Mahmood Wathra, Deputy Governor Saeed Ahmed, Chairman SECP Zafarul
Haq Hijazi, Chairperson of State Life, Nargis Ghaloo and Dean IBA,
Dr. Ishrat Hussain.