Former SBP governor Ishrat Husain calls Islamic banking ‘economic necessity’

Published October 4, 2025
Former SBP governor Dr Ishrat Husain speaks at the event.
—Fahim Siddiqi / White Star
Former SBP governor Dr Ishrat Husain speaks at the event. —Fahim Siddiqi / White Star

KARACHI: A book titled Unconventional — The Bank No One Saw Coming by Sibtain Naqvi on the success story of Meezan Bank was launched at a local hotel here on Friday evening.

Delivering the keynote address, former State Bank of Pakistan (SBP) governor Dr Ishrat Husain commended the author for spending five years on putting together material for the book.

He said it’s an honour and privilege for him to reflect on a journey that not only transformed an institution but has reshaped the contours of Pakistan’s financial landscape.

Sharing the lessons that he’s learned from the bank, he said he’d divided them into three parts: (a) as a model for the banking industry; (b) as a pioneer in Islamic banking; (c) and leadership and human resource development.

Dr Husain, commenting on the first part, said starting from ground zero in 2002, the bank has risen from one of Pakistan’s top financial institutions in a remarkably short span. It has outpaced its competitors, a clear reflection of its exceptional performance.

Sibtain Naqvi’s Unconventional — The Bank No One Saw Coming launched

He said in the world of corporate leadership, we often see two archetypes: “We encounter those who are brilliant strategists but falter in execution, and those who are operationally sound but lack a clear sense of direction. Rarely do we find a leader who embodies both. Irfan Siddiqui is one such rarity… Professionalism, meritocracy and integrity are the cornerstone of trust in building any institution. When nepotism and favouritism creep in, they erode this very ethos that sustains excellence.”

With respect to the second lesson, Dr Husain said before he joined the SBP, he was intellectually convinced that Islamic banking was not just a religious imperative, it was an economic necessity.

“Conventional banking places the entire burden on the borrower. Islamic banking, by contrast, introduces sharing, equity and fairness. It is not merely a financial model, it is a moral framework. Islamic banking has the potential to derive financial inclusion, alleviate poverty, support small farmers and invest in human capital… Unlike capitalism which often leads the marginalised behind or socialism which collapses under its own weight, Islamic finance offers a balanced path.”

Moving on to the leadership and human resource development aspect, he said let’s not forget leadership is not a solo act, it’s a symphony. The progress the bank has achieved would not have been possible without the devoted team work of its staff. “What sets them apart is not just competence, it is conviction driven by a sense of mission, not a 9 to 5 mentality. Their commitment to embedding Islamic banking is nothing short of inspirational.”

Dr Husain in conclusion said the bank’s journey is not just a case study, it is a blueprint of how vision, values and execution can come together to build not just a successful institution but a movement.

Speaking on the occasion, Mr Naqvi, the author, said it was an honour for him to write the history of an institution that has reshaped the financial industry in Pakistan. “I first heard of Meezan as a student at IBA when my finance teacher was discussing interest-free loans. As a student it was completely new. The idea that a bank would lend without charging interest was unfathomable.”

He said during the 2008 financial crisis when the financial giants of the world crumbled, Islamic banks came through largely unscathed. “It made me realise that Islamic banking was not just a religious choice but a sound business decision.”

He said the bank’s rise was inevitable. Traders, shop owners and professionals trusted its name. “Clearly, something extraordinary was happening.”

He added Meezan Bank’s Irfan Siddiqui’s story was inseparable from that of the bank’s.

Apart from the speeches, there were two panel discussions lined up for the audience with talks by Irfan Siddiqui and incumbent SBP Governor Jameel Ahmad.

Published in Dawn, October 4th, 2025

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

A long week

A long week

There’s some wariness about the excitement surrounding this moment of international glory.

Editorial

Unlearnt lessons
Updated 28 Apr, 2026

Unlearnt lessons

THE US is undoubtedly the world’s top military and economic power at this time. Yet as the Iran quagmire has ...
Solar vision?
28 Apr, 2026

Solar vision?

THE recent imposition of certain regulatory requirements for small-scale solar systems, followed by the reversal of...
Breaking malaria’s grip
28 Apr, 2026

Breaking malaria’s grip

FOR the first time in decades, defeating malaria in our lifetime is possible, according to WHO. Yet in Pakistan,...
Pathways to peace
Updated 27 Apr, 2026

Pathways to peace

NEGOTIATIONS to hammer out the 2015 Iran nuclear agreement took nearly two years before a breakthrough was achieved....
Food-insecure nation
27 Apr, 2026

Food-insecure nation

A NEW UN-backed report has listed Pakistan among 10 countries where acute food insecurity is most concentrated. This...
Migration toll
27 Apr, 2026

Migration toll

THE world should not be deceived by a global migration count lower than the highest annual statistics on record —...