Pakistan’s Islamic Banking Sector Expected to Witness Growth: Fitch
June 09, 2022 | Updated at June 09, 2022
Pakistan's Islamic finance industry is anticipated to continue growing in the medium term, owing to robust government support and steadily expanding public demand for Islamic products, according to Fitch Ratings.
Why it Matters?
The medium-term boost in the industry is anticipated with the effective consideration of the declaration made by Pakistan’s Federal Shariat Court (FSC) in April 2022, stating the complete and absolute prohibition of all forms and manifestations of Riba (interest) and its appeal to the government for the implementation of its decision by the 31st of December 2027. However, the policy execution is fraught with uncertainty, as earlier court rulings on the subject had little impact on the banking sector. Among other challen...