KARACHI: According to Finance Minister Muhammad Aurangzeb, the nation is headed toward stability and the economic issues have been successfully resolved.
The finance minister virtually addressed the opening session of the Second International Islamic Capital Markets Conference & Expo on Thursday, stating that Pakistan was on the correct path towards microeconomic stability and sustainable growth after facing major economic challenges that were successfully resolved.
According to the minister, Islamic capital markets and finance may play a crucial role in assisting Pakistan in staying firm on its path to macroeconomic stability.
According to him, Islamic finance—more especially, Islamic capital markets—could be crucial in this journey to market since products like equity funds, sukuk, and Shariah-compliant investment vehicles not only drew in capital but also lessened dependency on interest-based borrowing.
He noted that as of June 30, 2024, 56 percent of the PSX market capitalization was made up of Shariah-compliant securities, demonstrating the government’s commitment to reforming the financial system in accordance with Shariah principles.
“In the collective investment segment, 95 percent of assets under REIT administration, 48 percent under mutual fund management, and 66 percent under voluntary pension fund management are already Shariah-compliant. The minister pointed out that these figures understate the advancements we have made over the years.
According to Aurangzeb, important issues have been successfully resolved.
“Only then can we share the benefits with the citizens of Pakistan,” he said, emphasizing the necessity of an economic structure that fosters inclusive, sustainable growth and is consistent with Islamic principles.
According to him, Islamic finance and tools like sukuk, equity funds, and Shariah-compliant investment vehicles are essential for raising money for important areas like building infrastructure and reducing poverty through Islamic social finance while upholding moral and open standards.
“Pakistan has the potential to become a major global center for Islamic finance with these mechanisms in place,” he continued.
He claimed that the rising need for morally sound and environmentally friendly financial solutions worldwide was evidenced by the increased interest in Shariah-compliant investment products.
According to him, “the steady and healthy growth of Islamic finance, both in Pakistan and internationally, reflects the shifting preferences of investors towards value-based financial systems.” He also added that market participants from a variety of sectors, both inside and outside of banking, have become interested in this demand, which is helping to build a comprehensive ecosystem for Islamic finance.
