Islamic banking to be 12% of Pakistan financial sector in 3-5 years
It is predicted that in three to five years’ time, Islamic banking sub sector will be 12 percent of the total value of the financial sector in Pakistan which will help the global Islamic sector to exceed $1 trillion mark.
This was revealed in the research studies presented by Mckinsey and MTI Consulting, two consulting companies at the World Islamic Banking Conference held in Bahrain recently, said a press release issued here Thursday.
High growth will be fueled by adoption of Sharia-compliant banking products by the wider population than being restricted to a niche core group such as Muslims strata, as has been the case in Malaysia where Chinese are among the major consumers, they said.
They further said the rapid development of the Sukuk (the bonds market) as a corporate finance tool has drawn industry attention over the last year, with more complex bonds and related derivatives expected in the market.
The successful development of a robust and resilient Islamic financial system depends on the ability to integrate its various components including the Islamic banking industry, Takaful (an alternative to insurance), and the money and capital markets, the research suggested.
Of equal importance is the marketing and branding of the salient features of the Islamic financial service to reach the target, the two companies said. The six Islamic banks have been established with support from leading financial institutions from the Gulf Coordination Committee (GCC). This is also a justification of the tremendous investment opportunities and the growing interest of Sharia compliant foreign investors in Pakistan.