KARACHI: The National Asse­mbly Standing Committee on Finance and Revenue has recommended the formation of a sub-committee on the Eradication of Riba Bill 2019 to coordinate with all stakeholders and submit the suggestions to the NA body.

Chairing the meeting here on Friday, NA committee Chairman Faizullah said that suggestions must be finalised by the sub-committee before submission. MNA Moulana Abdul Akbar Chitrali has moved the bill to amend the fiscal law for eradicating interest (Riba).

The mover of the bill and special invitee to the committee meeting Mufti Taqi Usmani said the bill should be passed as soon as possible.

The joint sitting of the Senate Standing Committee on Finance and Revenue and NA Standing Committee would be held after submission of the recommendations by the sub-committee on the bill.

MNA Akbar Chitrali has moved the bill for abolition of interest

Speaking on the occasion, Chairman Senate Standing Committee on Finance and Revenue Muhammad Talha Mahmood suggested formation of a joint committee by including members of the Senate body.

Highlighting the growth of Islamic banking in the country, State Bank of Pakistan (SBP) Governor Reza Baqir said a gradual approach for transformation of banking system into Sharia-compliant banking was adopted at the start of this millennium wherein both the Islamic and conventional banks were allowed to operate simultaneously in the country.

This approach proved to be a success since its re-launch in 2002 and the Islamic banking industry now accounts for 17 per cent of the country’s overall banking system in terms of assets while in terms of deposits the share is 18.6pc, Mr Baqir informed the meeting. He added that currently, 22 Islamic banking institutions with a branch network of 3,651 branches along with 1,579 Islamic banking windows were operational across the country.

The SBP governor said the central bank has been putting efforts to make legal and regulatory infrastructure in compliance with Sharia principles. “SBP is among few regulators that have introduced comprehensive legal, regulatory, Sharia compliance framework for Islamic banking industry,” he added.

Published in Dawn, January 29th, 2022