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| State Bank working to develop Shariah compliant short-term securities: Salim Raza |
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Syed Salim Raza, Governor, State Bank of Pakistan has disclosed that SBP is actively working
with the industry and the Federal Government to develop Shariah compliant short-term securities
which will be issued on regular basis.
Speaking on the occasion of a talk on ‘Current Islamic Banking Paradigm and the Way
Forward’, Mr. Raza said that State Bank’s immediate objective is to improve and
diversify avenues for short-term liquidity management for the Islamic banking industry.
“ Islamic banks in Pakistan have to live with the big constraint of only being able to place
their surplus funds with other Islamic banks, in the absence of suitable investment opportunity,” he
said and added that this market gap both limits earnings, and inhibits aggressive deposit
mobilization drives.
Mr. Raza said the Islamic banking in the country, from a modest start in 2002, has made a
good progress and achieved 6% market share. “The heightened global interest in the subject,
particularly after the recent financial crisis, leads one to expect that Islamic banking will make more rapid strides globally and in Pakistan,” he added.
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