SECP Issues Islamic Finance Bulletin for FY23

The Securities and Exchange Commission of Pakistan (SECP) has published its first ‘Islamic Finance Bulletin’ for the financial year 2022-23 (FY23), aimed at providing up-to-date data, insights into new developments, and a deeper understanding of regulatory reforms in the Islamic financial services industry. The Bulletin provides essential information on the Islamic financial services industry including Islamic capital markets, non-banking financial institutions, and Takaful, while also offering a future perspective on SECP policies, regulated sectors, and cooperation. The SECP has conducted a diagnostic review of Islamic finance in its regulated sectors and subsequently published its report in February 2023, capturing information, data, challenges, and opportunities along with policy recommendations. Further, it has decided to publish quarterly data on Islamic finance, except data on Islamic banking. This Islamic Finance Bulletin therefore presents a overview of development in Islamic finance during the financial year ended on June 30, 2023. Despite facing challenges in economic transformation, Pakistan’s Islamic finance sector has made significant progress and currently makes up a significant portion of the country’s financial landscape. The Federal Shariat Court’s 2022 ruling to eliminate Riba and transform the economy in five years has accelerated these efforts, indicating continued growth in the sector. Moreover, for a comprehensive understanding of Pakistan’s complete Islamic financial system, the SECP also encourages readers to refer to the Islamic Banking Bulletin published by the State Bank of Pakistan.