Islamic banking sector growing at faster pace: SBP

FAISALABAD: A State Bank of Pakistan (SBP) officer said that Islamic Banking is yet another sector which is growing at a much faster pace.

“We are encouraging it to cater to the needs of the people who are inclined towards Islamic Banking,” he added. As it is comparatively new sector compared to the conventional banking, it was introducing new products which are fully compliant to the Islamic Shariah, he said. He further said that earlier in some cases only nomenclature of the banking was changed but now we are expecting really Islamic banking products in near future.

The SBP is providing cheap financing facilities with low mark-up rate to 5 important segments for the speedy, balanced and systematic industrial, economic and commercial growth in the country, said Waqas Kashif Bajwa, the chief manager of SBP Faisalabad.

Addressing an awareness session on Export Refinance Scheme, he said that economic growth is tagged with multiple factors. However the provision of finance is the sole responsibilities of SBP. Pointing out the 5 major sectors, he told that these include SME, women entrepreneurs, promotion of renewable energy resources, Islamic banking and up gradation of industrial units.

He briefed about the salient features of these schemes and said that among these include short and long term measures. Regarding export refinancing scheme, he told that this is the oldest scheme introduced in 1973. Under this scheme working capital is provided for 180 days at a markup rate of only 3 percent. (Pakistan Observer)