Lahore, November 02, 2012 (PPI-OT): Al Baraka Islamic Bank is not only going to introduce new Islamic financial products but will also open up new branches in Pakistan to facilitate the consumers of Islamic products.
This was stated by the President and Chief Executive Officer of Al Baraka Islamic Bank Adnan Ahmad Yousaf while talking to LCCI President Farooq Iftikhar on Friday. Country Head Al Baraka Islamic Bank Shafqaat Ahmad, LCCI Vice President Mian Abuzar Shad, former Presidents Mian Mohammad Ashraf, Mian Misbahur Rehman, Sheikh Mohammad Asif and Mian Muzaffar Ali were also present on the occasion. Adnan Ahmad Yousaf said that Islamic banking is in fashion today and has earned a shine that continues to attract funds.
“We don’t treat money as a commodity, which just makes a few people richer and everyone else poorer. Our way generates economic activity and spreads money throughout society. Islamic finance is based on a system of asset leasing and partnerships rather than outright money-lending.”
He said that Islamic mode of Banking and all its tools are fast gaining ground in Pakistan when compared to conventional mode of banking, though it is a highly untapped market as yet. He said Islamic financing products such as Mudarbah, Ijara, Musharaka and Islamic Export Refinance, etc., are catering to a diverse cross-section of the economy, including the Corporate, SME and Consumer sectors.
He said that today a large number of Islamic financial institutions are operating world-wide from China to USA. Western banks through their Islamic units in U.K., Germany, Switzerland, Luxembourg etc. also practice Islamic banking.
He said that the basic principle of Islamic banking is the prohibition of Riba or interest, which has seldom been recognized as applicable beyond the Islamic world but many of its guiding principles have consciously or unconsciously been accepted. The majority of these principles are based on simple morality and common sense, which form the bases of many religions including Islam.
Adnan Ahmad Yousaf said that the Islamic financial system employs the concept of participation in the enterprise, utilizing the funds at risk on a profit-and-loss-sharing basis. This by no means implies that investments with financial institutions are necessarily speculative.
He said that since the inception of modern Islamic finance in 1960’s, Islamic banking has evolved from its relatively modest size to a vibrant industry with an increasing global footprint having a size of $1.35 trillion and annual growth rate of more than 20 percent.
Speaking on the occasion, the LCCI President Farooq Iftikhar called for a mass media campaign to create awareness about Islamic banking to give further boost to the growth momentum of Islamic banking industry. The interest-free Islamic banking has recorded a robust growth in the country in the last few years and can further expand tremendously with the introduction of more products.
He said that the Lahore Chamber of Commerce and Industry would hold seminars and workshops in collaboration with Islamic financial institutions for the promotion of Islamic mode of banking in Pakistan.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854