Pakistan’s five takaful operators filed a petition in a court in Sindh province, the country’s second-largest Islamic banking market, to protest the rules which allow conventional insurers to offer takaful services.—File Photo

DUBAI: Pakistan’s conventional insurance firms will have to wait a few more weeks to learn if they can open takaful, or Islamic insurance, windows after a state court on Thursday adjourned a case challenging new regulations for the sector.

Pakistan’s five takaful operators filed a petition in a court in Sindh province, the country’s second-largest Islamic banking market, to protest the rules which allow conventional insurers to offer takaful services.

“The court has been adjourned, a date has not been fixed yet,” said Vaseeq Khalid, senior associate at law firm Mohsin Tayebaly & Co, which represents the takaful firms.  Khalid, speaking from Karachi, said the next hearing could be in two to three weeks, while the court’s initial injunction blocking the rules remains in place. On Thursday, the court handled administrative procedures related to the matter.

The new rules, launched last month, would make Pakistan the second country after Indonesia to officially allow takaful windows, which enable firms to offer Sharia-compliant and conventional products side by side, provided client money is segregated.  The rules also call for a centralised supervisory board to monitor all takaful operators, including windows. Takaful is seen as a bellwether of consumer appetite for Islamic finance products.

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

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.