State Bank of Pakistan Instructs Islamic Banking Industry to Adopt New AAOIFI Shariah Standard

The State Bank of Pakistan (SBP) has announced the adoption of the Accounting and Auditing Organization for Islamic Financial Institutions' (AAOIFI) Shariah Standard No. 49 – Unilateral and Bilateral Promise (SS – 49) with immediate effect, in a circular issued on the 2nd of September 2020. 

Addressed to all Islamic banks, Islamic banking subsidiaries and conventional banks with Islamic banking branches in Pakistan, the adoption of AAOIFI SS – 49 will further bolster the Shariah compliance framework and standardize Shariah practices in the Islamic banking industry in the country, according to the circular.

SBP added that failure to comply with the instructions may...