SBP governor calls for simplified Sukuk process to deepen debt market

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KARACHI: Jamil Ahmed, Governor of Pakistan’s Central Bank on Tuesday, emphasized the importance of deepening the loan market and facilitating the process of issuing new Sukkuk to help promote Islamic finance in the country.

Ahmed said at the National Islamic Economic Forum Conference 2025 that the promotion of Islamic finance is a major challenge for the limited issuance of SU Sukuk. “To remove this barrier, the banking industry, regulators and the government should work together in collaboration.

This will help increase investment in the Islamic banking industry, which will result in more part of Islamic banking in the banking sector as a whole. We are working to facilitate the structure of Sukk, or Islamic bonds and to facilitate the process of issuing new Sukk. The move has to ensure that the conscience is not only in accordance with the Shariah. “

He added that the central bank and the government are cooperating to transfer public debt to Sokuk. The comments of the Hadith have followed the recent launch of Pakistan’s first sovereign domestic green site worth Rs 30 billion in the Pakistan Stock Exchange. The purpose of this Sukki is to fund the flexible and renewable energy projects in the country.

After the 26th Constitutional Amendment in October 2024, Pakistan’s economy and banking sector must be in accordance with Sharia by 2028. The State Bank of Pakistan (SBP) Vision 2028 tries to convert the traditional banking system into an Islamic banking system. This vision includes a detailed change plan, which is developed in consultation with all stakeholders.

He said that by March 2025, assets of Islamic banking reached Rs 11.5 trillion, which was 21.1 % of the total banking assets. Islamic banking reserves were Rs 8.8 trillion, or 25.4 % of the total banking reserves. The number of Islamic bank branches has also increased to more than 8,000.

Ahmed said, “Although there is a lot of work to do, we have made significant progress, and the share of Islamic banking is slowly increasing. However, Islamic banking institutions need to take additional steps to increase their access.”

Ahmed noted that Pakistan’s economy faced severe challenges in 2022-2023, mainly due to heavenly inflation and problems in external account, which is affected by high imports and debt payments. These two problems put a lot of pressure on our economy. In response, the government and the SBP took a number of steps that helped to strengthen the economy. Inflation has decreased by 0.3 % in April, lower than 0.7 percent last month, and the government’s mid-term target is expected to stabilize 5-7 percent. Interest rates, which have fallen on a high record of 22 %, are now 11 %.

The external account has also shown improvement. During the financial year 2022, the current account deficit reached $ 17.5 billion. Thanks to various initiatives, it remained $ 3.3 billion in fiscal year and $ 2.1 billion in fiscal year 24. In the first ten months of the current financial year, Pakistan recorded an additional $ 1.9 billion current account. As a result, foreign exchange reserves have started to improve. Even despite external debt payments, SBP Forex reserves – which in the early 2023, have been more than $ 3 billion – more than $ 11 billion, which has been obtained without loans.

“The positive impact on the economy will be clear in the coming days,” he said.

By 2028 Global Islamic Finance Assets crossing $ 7.5tr: Standard Chartered Report

Recognizing the growing importance of finances globally globally, Islamic financial assets are being expected globally globally, identifying the growing importance of finance globally globally.

In 2024, according to the report, the Islamic finance industry reduced global assets by $ 5 trillion – increased from 2023 to 12 percent and increased from 2020 to 43 percent. Islamic Banking is more than 70 % of the total Islamic finances of Islamic finances, and increased from $ 4 trillion to $ 2028 in 2024 to $ 5.2 trillion in 2028 to $ 5.2 trillion to $ 5.2 trillion to $ 5.2 trillion to $ 5.2 trillion. During this period

The CEO of the Group Islamic Banking Group Islamic Banking in Standard Chartered Khurram Hilal said: “Islamic finance is entering a new era described through stability, stability and strategic integration. The 36 percent increase in assets is a strong basic principles of moral and comprehensive finances and global hunger.”

The report provides insights to financial institutions, which covers Islamic finance landscapes and provides insights since the ‘Plus of Islamic Banking’ client survey 2025. It examines drivers, regulatory developments and market expansion opportunities while tackling challenges in growth, liquidity and risk management. It also searches for market monitoring framework, innovation routes, and environmental, social and governance (ESG) integration, which is completed by the light of the market -featured market -studdes.