KARACHI: A high-level conference titled CotIB – Conversion to Islamic Banking was held today, bringing together industry leaders, policymakers, and experts to discuss critical aspects of the transition, including governance, capacity building, innovation, and social finance.
The conference underscored the immense potential of Islamic banking in driving economic growth, financial inclusion, and social development. Participants engaged in insightful discussions on the challenges and opportunities associated with the conversion process, fostering a collaborative environment for knowledge sharing and best practices.
Pakistan’s banking sector is required to be Shariah-compliant by 2027, an ambitious target for the Islamic banking industry. Achieving this goal requires a well-thought-out plan and coherent actions from all stakeholders. State Bank of Pakistan aims to continue leading the transformation towards a Shariah-compliant banking system. This vision aligns with the strategic plan of the State Bank of Pakistan, which has prioritized Islamic banking as a cornerstone of its efforts.
Through SBP-led initiatives, including the development of legal, regulatory, and supervisory frameworks, as well as the promotion of participatory modes of financing, Islamic banking’s share in the overall banking industry has increased manifold over the years, said Syed Samar Hasnain, Executive Director, Islamic Finance Group, State Bank of Pakistan.
Yasmin Hyder, Chief Executive of New World Concepts, welcomed the audience and highlighted the need for a learning platform like CotIB, to promote knowledge, understanding, dialogue & collaboration for conversion from Conventional to Islamic Banking.
Nadeem Hussain, Founder, Raqami Islamic Digital Bank delivered the keynote speech and highlighted the importance of robust governance frameworks in ensuring the integrity and stability of Islamic financial institutions.
Zafar Masud, Chairman, Pakistan Banks Association, emphasized the need for clear regulatory guidelines, effective risk management practices, and transparent reporting to build trust and confidence in the Islamic banking sector. He appreciated New World Concepts for arranging this very important dialogue, in collaboration with Learning Nest.
Consul General of Malaysia, Herman Hardynata Ahmad highlighted the achievements of Malaysia in developing the Islamic banking sector.
Jumadi Kadir, Group Chief Shariah, SME Bank Berhad, Malaysia presented a case study of Malaysian banks conversion from conventional to Islamic.
Practical implementation challenges faced in governance were highlighted in a high powered discussion with Rizwan Ata, President Bank Islami, Yousaf Hussain, President Faysal Bank, Mohd Atif Hanif, President, Al Baraka and Syed Amir Ali, Deputy CEO, Meezan, moderated by Iffat Mankani, CEO, JS Investments.
In the second session, titled Capacity Building, Professor Dr Ali Polat, from Turkiye made a presentation on “ Learnings and Mistakes” in Islamic Finance.
Capacity building emerged as a critical component of the conversion journey. A panel discussion highlighted the importance of investing in human capital development to equip industry professionals with the necessary skills and knowledge to meet the evolving demands of Islamic finance. The discussion moderated by Moneeza Butt comprised Khalid Zaman Khan, Head HR, Meezan, Asim Asif, Group Head, Commercial Banking, Al Baraka Bank, Saleemullah Shaikh, Head Islamic, HMB, Azhar Aslam, Head Islamic Banking, SCB.
Atyab Tahir, Co-Founder & CEO of HugoBank, spoke on Product Innovation in the third session highlighting the opportunities presented by digitalization to drive financial inclusion.
Innovation was another central theme, with participants exploring cutting-edge technologies and solutions to enhance efficiency, customer experience, and product development in Islamic banking.
A panel discussion comprising Lubna Malik, Director General, Financial Monitoring Unit, Javed Edhi, CEO, NIFT, Amin ur Rehman, Chief Digital Officer, Faysal Bank, moderated by Shariq Mobeen, Chief Digital Officer Meezan Bank, showcased successful case studies of Islamic fintech initiatives and encouraged collaboration between industry players and technology providers.
Social finance gained significant attention as a powerful tool for addressing social challenges and promoting sustainable development. The fourth panel discussion on Islamic Social Finance and the road to UN SDG Goals, featured Azeem Pirani, COO EFU Life Assurance and Sara Shah, Bank of Khyber and Professor Dr Ali Polat and explored innovative financing models and partnerships to increase access to finance for underserved communities and support socially responsible investments.
Ahmed Ali Siddiqi, Director Center for Excellence in Islamic Finance, IBA Karachi, concluded the conference with a renewed commitment to accelerating the conversion process and fostering a thriving Islamic banking ecosystem. Participants expressed optimism about the future of Islamic finance and its potential to contribute to the overall economic and social well-being of the region.
