ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Friday proposed new rules to promote Islamic financial markets in the country, saying the move would eliminate bottlenecks in product development and streamline Shariah and stock screening processes.
The SECP issued the draft Shariah Governance Regulations, 2023, which had been made available for public comment, to strengthen the framework for Shariah-compliant businesses and securities.
According to the Global Islamic Finance Report, a London-based publication covering developments in the Islamic financial services industry across the world, Pakistan emerged as the sixth most important Islamic financial market internationally in 2020.
“The proposed regulations provide for a complete process for the construction of an Islamic index at the stock exchange and introduce the concept of Shariah supervisory boards,” an SECP statement said on Friday.
It added the Shariah Governance Regulations, 2018, and the Shariah Advisors Regulations, 2017, had been integrated to remove overlapping provisions and requirements.
“By promoting Shariah-compliant financial products, the proposed regulations will contribute to the constitutional goal of eliminating Riba and Islamizing the economy,” the statement added.
The SECP said it intended to organize stakeholder consultation sessions in Karachi and Lahore in collaboration with the Pakistan Stock Exchange, the Federation of Pakistan Chamber of Commerce and Industry, and other stakeholders.
