Pakistan takes global recognition in Islamic Finance - SBP wins another award for promoting Islamic finance.

Byline: Shabbir Kazmi

Islamic Finance News (IFN), an arm of REDmoney Group, Malaysia, has announced State Bank of Pakistan (SBP) as the best Central Bank of 2021 across the world in promoting Islamic finance. The result was based on global voting. IFN Best Banks Poll is regarded as one of the prestigious accolades in the global Islamic finance space. Bank Negara Malaysia stood second while the Saudi Central Bank secured third position.

The category of the Best Central Bank in promoting Islamic Finance is one of the closest contested among regulators around the globe for establishing their supremacy through exceptional advances made during the year. SBP enjoys the honor to have won this prestigious award for the 5th time during last seven years. Previously, SBP was bestowed with this coveted award for the year 2015, 2017, 2018, and 2020.

IFN in its cover story while congratulating State Bank of Pakistan for yet another win as the Best Central Bank in Promoting Islamic Finance stated that they welcome back a leading light of the industry. In a closely fought contest, 2020 victor came roaring back to take the crown, said the IFN. IFN while announcing the poll result also stated that with its Governor, Dr Reza Baqir, recently promoted to be the new chairman of the Council of the IFSB, from his role as the Deputy Chairman in 2021, they can hopefully look forward to even stronger support and leadership from the central bank over the coming year.

The IFN Award to SBP as the best central bank is the global endorsement of its initiatives for promotion of Islamic banking in the country. The award reflects an international recognition of the strategic measures undertaken by SBP to put in place a robust policy environment for Islamic banking to prosper.

The State Bank of Pakistan has consistently promoted and encouraged Islamic finance within Pakistan, and has taken several significant steps. These include launch of 3rd five-year Strategic Plan for Islamic banking 2021-25, Shariah compliant standing ceiling facility and open market operations, strengthening of Shariah governance mechanism, Shariah compliant regulations for the lender of the last resort (LOLR) facility and licensing regime for digital banking covering the Islamic segment; besides taking initiatives for promoting better awareness amongst the masses, and strengthening international linkages. The Strategic plan 2021-25 envisages taking Islamic banking share of 30% in terms of assets and...