The Securities and Exchange Commission of Pakistan (SECP) has announced its intention to assess compliance with the Islamic Financial Services Board’s (IFSB) principles for Islamic capital markets. This move is aimed at further enhancing Pakistan’s position as a global leader in Islamic finance.
The SECP revealed this plan during a press briefing held on Tuesday, where it outlined its roadmap for strengthening the Islamic finance ecosystem. The discussion on the compliance assessment will be a focal point at the upcoming Second International Islamic Capital Market Conference, scheduled for December 12, 2024, at the Pearl Continental Hotel in Karachi.
Tariq Naseem, SECP’s Head of Islamic Finance, shared insights into the significant progress achieved in Islamic finance under SECP-regulated sectors. He noted that Shariah-compliant segments now make up 55% of the market capitalization of listed securities, 48% of mutual fund assets, and 65% of voluntary pension fund assets. Additionally, 95% of Real Estate Investment Trusts (REITs) under SECP’s regulation adhere to Shariah principles, highlighting the robust integration of Islamic finance into Pakistan’s capital markets.
Reflecting on global benchmarks, Mr. Naseem pointed out that Pakistan’s capital markets demonstrated an 86% compliance rate with the International Organization of Securities Commissions (IOSCO) principles for securities regulation, as determined in independent international assessments conducted in 2015 and 2018.
The press briefing, led by SECP Chairman Akif Saeed, Commissioner Mujtaba Ahmed Lodhi, and Executive Director Khalida Habib, emphasized the significance of the upcoming conference in driving the growth of the Islamic capital market.
The event, organized in collaboration with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Development Bank Institute (IsDBI), will bring together more than 20 renowned international experts and policymakers. Attendees from countries including Bahrain, Saudi Arabia, Nigeria, Malaysia, Türkiye, Oman, Iran, and the United Kingdom will contribute to the discussions.
Under the theme, “From Tech Transformation to Realising Sustainability: Building an Inclusive Islamic Capital Market,” the conference aims to explore the role of technology and sustainability in fostering a more inclusive Islamic financial ecosystem.
In addition to the main conference, the event will feature pre-conference workshops, a gong ceremony at the Pakistan Stock Exchange, and an Islamic Finance Exhibition showcasing 38 leading institutions. Key highlights will include panel discussions, breakout sessions, and a dedicated session on economic transformation with a focus on sustainability.
AAOIFI, a global standard-setting body for Islamic financial institutions, and IsDBI, the research arm of the Islamic Development Bank Group, bring unparalleled expertise in advancing Islamic finance globally. Their collaboration with SECP underscores Pakistan’s commitment to aligning with international standards and promoting the growth of Shariah-compliant financial instruments.
The SECP’s forward-looking approach, combined with initiatives like the upcoming conference, underscores its dedication to making Pakistan a hub for Islamic finance while ensuring alignment with global best practices.