CEIF at IMSciences Promotes Islamic Banking Principles

The 'Islamic Finance Summer School' recently held in Natyagali, Abbatabad, shed light on the principles and benefits of Islamic Banking. Participants and speakers gathered to discuss how Islamic Banking aligns with Shariah principles, emphasizing the harmful effects of 'interest' on the economy. Dr. Mufti Muhammad Zubair Usmani highlighted the global acceptance of Islamic Banking, rooted in Quranic and Sunnah teachings, as a viable alternative to conventional banking.

One of the key challenges facing Islamic Banking is the lack of awareness among individuals regarding its products and services. To address this issue, public education campaigns are deemed essential. Misconceptions and criticisms from rival banks also hinder the growth of Islamic Banking, necessitating innovation and a wider range of offerings to attract more customers.

Usman Ihsan stressed the importance of transitioning all banks in Pakistan to Islamic Banking, citing the Quranic prohibition of 'Riba' (interest). Media advocacy, especially after the Federal Shariah Court's ruling against Riba, is crucial in promoting Islamic Banking. The government's commitment to fully implement Islamic Banking by 2027 is viewed as a positive step towards a Riba-free economy.

The global expansion of Islamic Banking has been remarkable, with Pakistan poised to capitalize on its potential. The industry has witnessed steady growth, marked by increasing assets and deposits. The rising preference for Shariah-compliant financing presents a significant opportunity for banks and financial institutions to drive economic growth.

The Centre for Excellence in Islamic Finance (CEIF) at the Institute of Management Sciences (IMSciences) Peshawar played a pivotal role in organizing the event, emphasizing the importance of understanding Islamic Banking for the country's economic progress.

Islamic Banking, with its foundation in Islamic principles, offers a promising alternative to conventional banking systems. As awareness grows and misconceptions are dispelled, the potential for Islamic Banking to drive economic development becomes increasingly evident. With concerted efforts from stakeholders and support from the government, the future of Islamic Banking in Pakistan and globally looks bright.