KARACHI, Sept 25: Three foreign and two local groups have applied to the State Bank for establishing complete Islamic banks in Pakistan, while most of the banks, including local and foreign, have applied either for licences or opening of more branches.

This was stated by adviser to the State Bank on Islamic Banking and member Shariah Board Pervez Said while addressing a seminar on "Prospects of Islamic banking in Pakistan", organized by the Karachi Branch Council, Institute of Cost and Management Accountants of Pakistan (ICMAP) here on Friday evening.

An ICMAP statement issued on Saturday said Pervez Said also named the banks that included private, foreign, privatized, nationalized and denationalized banks that applied for licences for Islamic banking or expansion of their business.

He said the SBP Shariah Board was working perfectly well. He said the people should feel their responsibility and come to try the Islamic banking and make it a success.

The adviser said the growth of Islamic banking across the world was 20 per cent, while the growth rate of conventional banking was five per cent, however, the amount involved in the Islamic banking was still much less than the conventional banking. He stated that no sudden change was possible as the entire system was bound with interest-based economic activities and the only way was to make a strategy and move step by step.

Pervez Said refused to accept counter arguments by other speakers who were of the view that partial system was not workable.

Earlier, Dr Imran Usmani, a renowned Islamic scholar, delivered a detailed lecture on various types of Riba, prospects of Islamic banking and growth of Islamic banking across the world.

He says Islamic Shariah prohibits "interest" but it does not prohibit all gains on capital. "It is only the increase stipulated or sought over the principal of a loan or debt that is prohibited. Islamic principles simply require that performance of capital should also be considered while rewarding the capital," Mr Usmani added.-APP