SECP Working on Strategic Action Plan for Development of Islamic Finance.
SECP Aims to Drive Growth and Standardization in Islamic Finance
The Securities and Exchange Commission of Pakistan (SECP) is actively driving the development of Islamic finance within its regulated sector.
Pakistan boasts a thriving Islamic finance sector, offering diverse Shariah-compliant products like Sukuk, Takaful, and Islamic banking.
The SECP actively promotes its growth, with initiatives like the Islamic Finance Strategic Plan and recently issued guidelines for Islamic financial services across all regulated sectors.
This includes both the implementation of recommendations from a recent diagnostic review and the creation of a comprehensive Islamic Finance Strategic Plan for 2023-25.
Key areas of focus include:
- Implementing a strategy for global Islamic finance standards.
- Adopting a staggered approach to implementing AAOIFI standards.
Strengthening the Legal and Regulatory Framework:
- Amending the Modaraba Ordinance, 1980.
- Revising Modaraba Rules, Modaraba Regulations, and various circulars.
- Drafting an Islamic Financial Services Act.
- Revamping Shariah Governance Regulations.
- Introducing a Shariah governance framework for NBFCs.
Facilitating Growth in Non-Bank Financial Sector:
- Issuing guidelines for offering Islamic financial services across all regulated sectors.
- Expanding the availability of Shariah-compliant financial products.
These initiatives, along with the upcoming Islamic Finance Strategic Plan, aim to pave the way for organized and sustainable growth in Islamic finance within Pakistan’s regulatory landscape.
Additionally, the SECP highlighted a landmark development: the issuance of guidelines for offering Islamic financial services across all its regulated sectors. This initiative will facilitate the development of Shariah-compliant financial products in a wide range of areas, including capital markets, Takaful, Modarabas, NBFCs, pension and private funds, REITs, and more.
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