ISLAMABAD: Pakistan has the potential to expand its share in the global Islamic economy by developing innovative Shariah-compliant financial products, strengthening regulatory frameworks and building professional expertise, said Yousef Hassan Khalawi, Secretary General of the Islamic Chamber of Commerce and Development (ICCD).
Speaking at the Securities and Exchange Commission of Pakistan (SECP) Talk Series on “Shaping the Future of Islamic Finance: Pakistan and the Global Perspective,” he said Pakistan’s large Muslim population, sizeable diaspora, growing Islamic finance market and strong pool of financial professionals provide a solid foundation to tap opportunities in the global Islamic economy.
He said the Islamic finance industry must adopt a forward-looking approach, particularly in emerging areas such as fintech, and develop products that serve both domestic and international markets.
Discussing Maqasid al-Shariah, Mr Khalawi said that Islamic finance should go beyond financial transactions to contribute to broader social and economic development. He highlighted the potential of listed Waqf structures to mobilise even small individual contributions for education, healthcare and infrastructure through professionally managed and transparent mechanisms.
He also identified agricultural finance as a major untapped opportunity and called for specialised Shariah-compliant instruments and expertise for the sector. The discussion also covered Qard Hassan, or interest-free lending, and the role fintech could play in making such financing more accessible and cost-effective.
Mr Khalawi said Shariah standardisation and capacity-building remain important challenges and stressed the need to develop professionals with expertise in both Shariah principles and modern finance.
SECP Commissioner Imtiaz Haider highlighted the growing footprint of Islamic finance in Pakistan’s capital markets and non-bank financial sector. He said 309 securities listed on the Pakistan Stock Exchange are Shariah-compliant, representing 65 per cent of total market capitalisation, with a combined market value of Rs13.2 trillion.
He said assets of Islamic mutual funds had increased from Rs722 billion in June 2023 to Rs2.2tr in June, while 197 of the country’s 389 mutual funds are Shariah-compliant. He also highlighted emerging Islamic finance products, including SECP-approved models for Islamic microfinance, housing finance and investment finance.
Published in Dawn, August 22nd, 2026
