Karachi January 29 2022: The National Assembly (NA) Standing Committee on Finance and Revenue has recommended the formation of a Sub-Committee on Eradication of Riba Bill, 2019 to coordinate with all stakeholders and submit the suggestions to the NA Committee.
Chairing the meeting here Friday, the Chairman of the Committee Faiz Ullah said that suggestions should be submitted to the Committee after finalizing work by the Sub-Committee. MNA Moulana Abdul Akbar Chitrali has moved “Eradication of Riba Bill, 2019” to amend the fiscal law to eradicate the interest (Riba) by amending certain fiscal law.
The mover of the Bill and special invitee to the meeting of committee, Mufti Taqi Usmani said that the Bill should be passed as soon as possible.
Besides, the joint sitting of the Senate Standing Committee on Finance and Revenue and NA Standing Committee would be held after submission of the recommendations by Sub-Committee on the Bill, he further elaborated.
Speaking on the occasion, Chairman Senate Standing Committee on Finance and Revenue, Muhammad Talha Mahmood suggested formation of the joint Committee by including members of the Senate Committee.
Highlighting the growth of Islamic Banking in the country, Governor State Bank Reza Baqir said that a gradual approach for transformation of banking system into Shariah compliant banking was adopted at the start of this millennium wherein both the Islamic and conventional banks were allowed to operate simultaneously in the country.
This approach has proved to be a success since its re-launch in 2002 and the industry now accounts for 17 percent of the country’s overall banking system in terms of assets while in terms of deposits the share is 18.6 percent, he informed the meeting and added that currently, 22 Islamic banking institutions with a branch network of 3,651 branches along with 1,579 Islamic banking windows were operational across the country.
The Governor SBP told that SBP has been putting efforts to make legal and regulatory infrastructure in compliance with Shariah principles, adding that SBP is among few regulators that have introduced comprehensive legal, regulatory, Shariah compliance framework for Islamic banking industry.
Speaking on the devaluation of Pak-Rupee, he told that since July 2019, the exchange rate is market determined and this is in line with best international practice and means that instead of any institution setting the value of the rupee.
He further elaborated that the exchange rate level is determined in the market by factors affecting the supply and demand of foreign exchange. In Particular, SBP does not set the level of the exchange rate and as result, for the first time in Pakistan’s history, the exchange rate has been moving in an orderly manner in both directions, he recounted.
On the Monetary Policy, he articulated that the Monetary Policy Committee (MPC) has decided to maintain the policy rate at 9.75 percent, in line with the forward guidance provided in the last MPC meeting. The decision hinges upon the positive impact successive measures taken in the last few months to moderate domestic demand and guide the economic recovery to a sustainable path.
The meeting was attended by MNAs Syed Naveed Qamar, Faheem Khan, Muhammad Israr Tareen, Qaiser Ahmed Shaikh, Ali Pervaiz and officials of State Bank of Pakistan.