PESHAWAR, Nov 21: The provincial government is planning to Islamize the Bank of Khyber by gradually abandoning conventional banking system, says NWFP minister for finance, planning and development Sirajul Haq.

“The provincial government has chalked out a roadmap to make the Bank of Khyber an Islamic bank, switching to Islamic banking practices from the conventional banking system,” finance minister said while speaking at a press conference here on Friday.

He said that the public-sector bank’s 29 branches would be switch over to Islamic banking mode in due course of time.

He was accompanied by the newly-inducted managing director of the BoK.

The provincial finance minister released details of the Islamic banking mode to be formally introduced in the provincial public sector entity from Saturday.

Prime minister Mir Zafar Ullah Jamali is scheduled to preside over a ceremony in which Islamic banking mode would be formally adopted by the bank.

“We have fulfilled our promise ... by introducing Riba-free banking in the province,” claimed the finance minister.

He said that after the introduction of Islamic banking on Saturday, the BoK would become the first public sector bank in the Islamic world conducting Riba-free banking operations.

“This is a major feat the ... NWFP government has recorded in a short span in office,” maintained the finance minister.

“This is not an experiment on the part of the MMA’s provincial government ... (the system) has been introduced after a comprehensive homework and is one of the major achievements recorded by the provincial government ...,” said Sirajul Haq.

The newly-inducted managing director of BoK, Dr Munir Ahmed, highlighted benefits of the Islamic banking mode for the trade and business community.

He expressed the hope that the Islamic banking operations would bring prosperity and development to the NWFP besides helping remove poverty and create job opportunities.