ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has set a roadmap for the promotion of Islamic Finance in Pakistan. SECP aims the enhancement of Shariah compliance in the capital market of Pakistan by restructuring and reorganizing the Islamic capital market.
According to Media and Corporate Communication Department of SECP, SECP is centralizing the Shariah related capital market activities, introduction of Shariah Regulation for takaful, modarabas, Islamic mutual funds, Islamic pension funds, Islamic REITs, Islamic products and instruments, Shariah complaint (non-financial), other Islamic financial institutions except banking.
The step has been taken on the advice of Islamic Finance Department (IFD) – established in February 2015 – and Chairman SECP Mr. Zafar Hijazi who is interested for the growth of Islamic financial market and Shariah complaint companies in the country. The IFD and Securities Market Division of the SECP are working together to introduce ‘All-Share Shariah Complaint Companies’ Index at the Karachi Stock Exchange.’
In this regard, recommendations has been given by SECP to Steering Committee that submitted its report to Minister of Finance, Senator Mohammad Ishaq Dar. Steering Committee has form a SBP-SECP Joint Forum on Islamic Finance for the implementation of the recommendations.
The SBP-SECP joint forum on Islamic Finance will also take measures for the promotion of takaful industry. The forum will also focus on the two important elements of Islamic capital market – modarabas and sukuk – and steps will be taken for removal of hindrances and costs issue associated with tax/stamp duties which are restricting the promotion of Sukuk in the country.