Domestic Sukuk on Regular Basis Needed to Ensure Level Playing Field for Pakistan’s Islamic Banks

Junaid Ahmed, Chief Executive Officer at Dubai Islamic Bank Pakistan, has said that the Government of Pakistan needs to issue domestic Sukuk regularly in order to make sure that Islamic banks compete on equal footing with conventional banks.

Why it Matters?

The Government is making positive progress towards issuing additional Sukuk, which is likely to happen soon. This will give Islamic banks the essential push to invest in order to put extra deposits to good use. It will also assist Islamic banks in attracting new deposits and distributing profits to depositors in a fair manner.

Details

By 2025, the State Bank of Pakistan (SBP) envisions Islamic banking accounting for one-third of the whole banking industry....