PESHAWAR, Aug 31: NWFP Senior Minister Sirajul Haq has said that the government after introducing Islamic banking in the province will also encourage other banks to open interest-free branches in Frontier.

"It will create an environment of open competition and the people would get rid of the interest-based system of banking and economy," he commented. He was talking to a delegation of Meezan Bank led by its president Irfan Siddiqui, which had come to seek permission for starting interest-free banking.

The minister welcomed the bank's decision and said the government would fully encourage interest-free business by any entrepreneur. The aim of launching this system was not to start business and earn incomes by the government itself but to Islamize the economy and set an example.

Mr Siraj revealed that income rate of BoK had considerably increased up to 11 per cent after the introduction of interest-free banking and had also earned a record income of Rs 13.2 million which was more than the profit of Rs 10 million of the past one decade.

He asserted that assets of BoK had also increased by Rs 1.7 billion while the bank provided income of Rs 13.7 million to its account holders during this short period. -PPI