ISLAMABAD, Sept 30: The Task Force constituted by the Securities and Exchange Commission of Pakistan (SECP) to prepare rules for Takaful business - Islamic mode of insurance - has submitted its report to the SECP.

According to a press release, Takaful is an Islamic mode of insurance, which provides for mutual financial aid and assistance to participants to meet contingencies through a common fund.

In pursuance to the government's objective of Islamization of economy and provide insurance coverage to institutions undertaking Islamic financing, the SECP had decided to allow Takaful business.

Takaful business can be conducted under the Insurance Ordinance, 2000 but the rules for its conduct are to be formulated. In this regard, the SECP constituted a Task Force headed by former Chief Justice of Federal Shariat Court, Mian Mahboob Ahmed and comprises Shariah experts and others.

The task force, after detailed deliberations and consultations with religious scholars and other experts on Takaful, has prepared draft rules for the conduct of Takaful business and has also made recommendations on certain key policy issues with regard to Takaful operations in the country.

The draft rules would be finalized in concurrence with the Ministry of Commerce after inviting public comments. The SECP has already submitted draft rules to the Ministry of Commerce for its review.