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Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries

Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries
This photo taken on July 17, 2018 shows a Pakistani currency dealer counting US dollars banknotes at a currency exchange shop in Karachi. (AFP/File)
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Updated 20 May 2025
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Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries

Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries
  • SECP has outlined phased approach encouraging institutional investors to engage with Shariah-compliant brokers
  • Islamic financial institutions being urged to channel takaful, investment activities through specialized intermediaries
Updated 20 May 2025
Ismail Dilawar
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KARACHI: The Securities and Exchange Commission of Pakistan (SECP) is proposing new measures aimed at strengthening the presence and operations of Shariah-compliant intermediaries within the capital market, the regulator said in a statement this week.

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027. Following the order, the government and the State Bank have taken several measures ranging from changing laws to issuing sukuk bonds to replace interest-based treasury bills and investment bonds.

However, documents seen by Arab News earlier this year showed Pakistan’s government had failed to achieve a target set by the central bank to increase the share of Islamic banking deposits in the country by 50 percent by January this year.

“The paper proposes a phase-wise approach for Shariah-compliant institutional investors to route their business through Shariah-compliant brokers based on a plan to be prepared by their respective boards of directors,” the SECP said about the latest proposal. 

“The paper encourages Islamic financial institutions, including providers of Islamic window services, to utilize Shariah-compliant intermediaries for takaful and investment purposes in situations where they are not obligated to do so.”
 
Other proposed measures include creating a specific category for Shariah-compliant intermediaries for greater visibility on the Centralized Gateway Portal and a dedicated list of Shariah-compliant asset management companies on EMLAAK Financials, Pakistan’s first digital mutual fund aggregator. The platform brings together multiple Asset Management Companies (AMCs) and their mutual funds under one roof. It is a venture of ITMinds Limited, a wholly owned subsidiary of the Central Depository Company of Pakistan (CDC).

In order to facilitate Roshan Digital Account (RDA) clients, creating a separate category of Shariah-compliant intermediaries on the websites and mobile apps of Islamic banks would also be explored in coordination with relevant stakeholders, the SECP said.

Topics: #pakistan Securities and Exchange Commission of Pakistan Federal Shariat Court

Pakistan’s GB bans construction of new hotels around lakes, earning praise from environmentalists, residents

Pakistan’s GB bans construction of new hotels around lakes, earning praise from environmentalists, residents
Updated 21 sec ago
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Pakistan’s GB bans construction of new hotels around lakes, earning praise from environmentalists, residents

Pakistan’s GB bans construction of new hotels around lakes, earning praise from environmentalists, residents
  • Building new hotels around lakes banned for five years to discourage unregulated constructions, protect natural environment, says official
  • Environmentalists stress importance of protecting lakes, noting several in region serve as source of drinking water for Gilgit-Baltistan residents 
Updated 21 sec ago
Nisar Ali

KHAPLU, Gilgit-Baltistan: Environmental experts, residents and activists have praised the government’s move this week to ban the construction of new hotels around lakes in Pakistan’s northern Gilgit-Baltistan (GB) region for five years, noting it would help protect the area’s natural sites. 

Pakistan’s mountainous GB region is home to over 13,000 glaciers, more than any other country apart from the polar regions, as well as picturesque lakes, orchards and mountains. As per the GB Tourism Department, over one million tourists visited the area in 2024. 

The rise of tourism in the area has led to the construction of new hotels, which have sparked concerns of increasing pollution, waste, lack of regulation and straining of water and power resources in the area. 

A video by foreign vlogger George Buckley in June, showing allegedly untreated sewage being discharged into the region’s picturesque Attabad Lake, went viral on social media. It prompted calls for thorough checks and inspections of hotels in the area. 
 
“Gilgit-Baltistan is becoming a forest of concrete due to the influx of tourism,” Syed Asrar ul Hasnain, an official of GB’s Environmental Protection Authority (EPA), told Arab News over the phone.

“The region was going toward an unregulated type of development. Due to this situation, our department sent a recommendation to the government to ban the issuing of NOCs [no objection certificates] for the new construction of hotels,” he added. 

Hasnain vowed that authorities would ensure that hotels that were already functional in the region would also be monitored. 

“The main objective behind the ban is the protection of natural beauties and the environment,” he said. “And initially, the ban is for five years.”

Kamal Khan, commissioner for the Baltistan region, said the construction of new hotels near lakes and “environmentally sensitive regions” in all four districts of the Baltistan region has been banned as well. 

He stressed that sewerage treatment plants (STPs) should be part of hotels constructed near water bodies.

“[Unfortunately], the operational hotels don’t have STPs in the region,” Khan said. “And after filling the pits, the sewage water is mixed in the water body, and it is hazardous for human life and health.”

Noting that GB has a “fragile environment,” Khan vowed to protect it through such measures.

“We have directed all existing and functional hotels to make STPs in their hotel, if the hotels have a high number of rooms,” the commissioner said. “If they do not implement our order, we will seal the hotels.”

’GOOD OMEN’ 

Dr. Salaar Ali, head of the Department of Environmental Science at the University of Baltistan, appreciated the government’s move, saying it would help protect the natural environment. 

“The lakes are not only a tourist destination, but many like Sadpara Lakes are a source of drinking water for the residents,” Dr. Ali told Arab News.

“And the protection of these lakes and areas should be our priority.”

He also called on authorities to ban the use of motorboats in the region, saying they were responsible for littering in freshwater bodies.

Kiran Qasim, a resident of Gilgit and a journalist, described the ban as a “very effective” measure, saying it would also help mitigate the effects of climate change. 

“The construction around natural lakes also disturbs plants, birds and fish, etcetera,” she explained. “Instead of imposing a ban for only five years, the ban should be for a long period.”

Zahoor Ilahi, a social activist from Hunza Valley, said authorities should promote environmentally friendly constructions such as huts.

“On the other side, multi-story buildings are dangerous for our environment,” he said. “And there should be no exception for big investors. Laws should be implemented equally.”

Manzoor Hussain, the president of the Hotel Association of Hunza, described the ban as a “good omen” but echoed the same concern. 

“We second this move, but there should be no difference between the rich and the poor,” Hussain said, calling on authorities to seal hotels that don’t meet environmental standards.

“The laws should be implemented to protect the environment, in a real manner, not just to get fame on social media,” Hussain said. 

Topics: Gilgit Baltistan George Buckley Hunza climate change

Pakistan issues new flood alert as monsoon death toll climbs to nearly 200

Pakistan issues new flood alert as monsoon death toll climbs to nearly 200
Updated 20 July 2025
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Pakistan issues new flood alert as monsoon death toll climbs to nearly 200

Pakistan issues new flood alert as monsoon death toll climbs to nearly 200
  • Official data shows 193 people, among them 93 children, have been killed in rain-related incidents since June 26
  • Disaster management authority warns of urban flooding risks in Lahore, Rawalpindi, Multan and other Punjab cities
Updated 20 July 2025
Shahjahan Khurram

ISLAMABAD: The National Disaster Management Authority (NDMA) issued a fresh flood alert from July 19-25 this week, as the death toll from heavy rains across Pakistan since late June surged to nearly 200. 

According to the NDMA’s latest situation report, 193 people have been killed in total since June 26 in rain-related incidents, which includes 93 children, 64 males and 36 females.

Punjab reported the highest number of deaths, 114, followed by Khyber Pakhtunkhwa (KP) with 40, Sindh 21, Balochistan 16 while Azad Kashmir and Islamabad each reported a single death.

“The National Disaster Management Authority has issued a flood alert due to expected monsoon rains across various parts of the country from today till Friday next,” state broadcaster Radio Pakistan said in a report on Saturday. 

The NDMA said intermittent rains are expected in KP with the risk of flooding in rivers Kabul, Swat and Panjkora as well as Kalpani and Bara streams.

It warned of the possibility of flooding and landslides in KP’s Nowshera, Malakand, Swat, Dir and upper mountainous areas during this period. 

“Heavy rainfall is expected in Islamabad and various cities of Punjab including Rawalpindi, Lahore, Sialkot, Faisalabad, Multan, Khanewal, Sahiwal, Muzaffargarh, Kot Addu, Taunsa, Rajanpur, Bahawalpur and Rahim Yar Khan,” the report added. 

The NDMA also warned of urban flooding risks in Punjab’s Lahore, Rawalpindi, Multan and other cities, saying that the province’s low-lying areas were particularly at risk of being submerged with water. 

It said monsoon rains are also expected in Sindh’s Karachi, Hyderabad, Sukkur, Jacobabad, Thatta, Badin, Larkana, Jamshoro, Nawabshah and Mirpurkhas districts.

“Urban flooding may occur in these areas due to rainfall, with the possibility of water accumulation on roads, streets and underpasses,” it added. 

Monsoon season brings South Asia 70 to 80 percent of its annual rainfall, arriving in early June in India and late June in Pakistan, and lasting through until September.

The annual rains are vital for agriculture and food security, and the livelihoods of millions of farmers. But increasingly erratic and extreme weather patterns are turning the rains into a destructive force.

In 2022, record-breaking monsoon rains combined with glacial melt submerged nearly a third of Pakistan, killing more than 1,700 people and displacing over 8 million. In May, at least 32 people were killed in severe storms, including strong hailstorms.

Pakistan’s Met Office warned in a press release on July 18 that monsoon currents penetrating Sindh and upper parts of the country are likely to “intensify” in the upper and central parts of the country from July 20.

Topics: Pakistan Floods monsoon Flood Alert

Pakistani climber killed, foreigner injured in K2 avalanche 

Pakistani climber killed, foreigner injured in K2 avalanche 
Updated 20 July 2025
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Pakistani climber killed, foreigner injured in K2 avalanche 

Pakistani climber killed, foreigner injured in K2 avalanche 
  • Avalanche struck four climbers 500 meters above K2 base camp on Friday afternoon, says state media
  • K2, 8,611 meters high. is considered among dangerous peaks worldwide due to extreme weather conditions
Updated 20 July 2025
Arab News Pakistan

ISLAMABAD: A Pakistani climber named Iftikhar Hussain was killed this week and a foreigner sustained injuries after an avalanche struck Camp 1 at K2, the world’s second-highest peak, state-run media reported.

The incident took place on Friday when the camp was struck by an avalanche at approximately 2:30 pm, state-run Associated Press of Pakistan (APP) said in a report, citing a press release from the Alpine Club of Pakistan (ACP) on Saturday.

The state media said that the avalanche occurred around 500 meters above the base camp, catching four climbers in its path. Two managed to return safely to the Advance Base Camp, while the foreign climber suffered minor injuries.

“Local climber Iftikhar Hussain, a resident of Sadpara, Skardu, lost his life in the incident,” APP reported on Saturday. “His body was recovered and brought down to the base camp.”

Standing at 8,611 meters (28,251 feet) on the Pakistan-China border, K2 is 238 meters shorter than Everest but is considered technically more challenging— earning it the nickname “Savage Mountain.”

Following the incident, the expedition outfitter submitted a formal request to Major General Irfan Arshad, the president of the ACP and Askari Aviation, for a mercy helicopter operation to repatriate the deceased.

 The request was approved on humanitarian grounds, after which Hussain’s body was airlifted to Skardu in northern Pakistan. 

Pakistan’s northern Gilgit-Baltistan region is home to some of the tallest peaks in the world and a major tourist destination. Thousands of tourists and foreign climbers visit the region each year for expeditions on various peaks, paragliding and other sports activities.

Pakistan has produced several professional climbers, both men and women, who have summited some of the world’s tallest peaks in recent years. 

Topics: K2 Iftikhar Hussain

Rights activists welcome Pakistan Senate move to scrap death penalty for two crimes

Rights activists welcome Pakistan Senate move to scrap death penalty for two crimes
Updated 20 July 2025
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Rights activists welcome Pakistan Senate move to scrap death penalty for two crimes

Rights activists welcome Pakistan Senate move to scrap death penalty for two crimes
  • Activists urge stronger protections for women as one offense involves publicly stripping them
  • Harsh punishments may seem tough, they say, but often let offenders of such crimes walk free
Updated 20 July 2025
NAIMAT KHAN

KARACHI: Rights activists in Pakistan on Saturday welcomed Pakistan’s Senate decision to abolish the death penalty for two criminal offenses— publicly stripping women and harboring hijackers— but stressed the need for stronger legislation and better enforcement to ensure justice for survivors and prevent violence.

The reform amends Sections 354-A and 402-C of the Pakistan Penal Code and replaces capital punishment with life imprisonment for the two crimes.

Lawmakers say the move is part of a broader effort to align Pakistan’s criminal justice system with international human rights standards, particularly under the European Union’s Generalized Scheme of Preferences Plus (GSP+), which grants preferential trade access to countries that uphold certain rights commitments.

“Publicly stripping women of their clothes is one of the most heinous crimes and must be met with the harshest punishment,” Mahnaz Rahman, woman’s rights activist and former executive director of the Aurat Foundation, told Arab News. “While we strongly advocate for severe punishments for such acts, we do not support the death penalty for any crime, including this one.”

She said life imprisonment itself was an “extremely severe” punishment, though she insisted the change must be accompanied by comprehensive and robust legislation to prevent this and all other forms of violence against women.

“Ultimately, it is the effective enforcement of laws and accountability that will deter such crimes and help ensure that women feel genuinely safe and protected in our society,” she added.

Sarah Belal, Executive Director of Justice Project Pakistan (JPP), said the reform aligned Pakistan’s criminal justice system more closely with the principles of fairness and the rule of law.

“The death penalty has never been enforced for this offense, but its mere presence has discouraged convictions and denied survivors meaningful redress,” she said. “Harsh punishments may appear tough, but they often let perpetrators walk free.”

“Removing the death penalty for these offenses does not mean they are being decriminalized,” she added. “It simply means we are pushing for stronger, more proportionate implementation of the law.”

Senator Talal Chaudhry of the ruling Pakistan Muslim League-Nawaz (PML-N) party who introduced the bill said the amendments had been thoroughly discussed and approved by a standing committee with cross-party input.

“Replacing the death penalty with life imprisonment under both sections is part of Pakistan’s legal reforms,” he said.

The bill must now be passed by the National Assembly before it can receive presidential assent and become law.

Under existing law, Section 354-A allows for capital punishment or life imprisonment for anyone who assaults and strips a woman in public, while Section 402-C applies the same punishment to individuals who knowingly harbor hijackers.

The new bill eliminates the death penalty option for both. However, some lawmakers have voiced concern over the move.

Senator Samina Mumtaz Zehri of the Balochistan Awami Party warned that Pakistan’s low conviction rates and weak enforcement mechanisms could make reduced punishments ineffective as a deterrent.

“This is not right,” she was quoted as saying by Dawn newspaper. “This is not going to help the country or its people.”

Chaudhry defended the move, pointing to the misuse of capital punishment laws enacted during the military regime of General Zia-ul-Haq.

“Life imprisonment is by no means a minor punishment,” he said, noting that the law had often been abused by police to settle personal vendettas.

Federal Law Minister Azam Nazeer Tarar emphasized that the changes did not affect death sentences for more serious crimes like murder or rape.

“We are only removing the death penalty from offenses that do not constitute the ‘most serious crimes,’ a key requirement under the GSP+ agreement,” he said in response to a query by Senator Shibli Faraz.

Pakistan has long faced international scrutiny over its broad application of the death penalty.

At least 31 offenses are currently punishable by death under Pakistani law. While executions have not taken place since 2020, over 6,100 people remain on death row, according to the Justice Project Pakistan.

Between 2015 and 2019, more than 500 people were executed following the end of a moratorium in 2014.

Senator Quratulain Marri of the Pakistan People’s Party, a coalition partner of the ruling PML-N, said her party opposed the death penalty on principle.

“There are numerous studies on how capital punishment is not an effective deterrent,” she told Arab News. “While the need for reforms cannot be ruled out, we have to consider bringing changes that better society in the long run. The aim is to rid society of the crime and not just the criminal.”

Topics: Pakistan Senate death penalty

Pakistan cuts Karachi port charges by 50% in climate-focused maritime reform push

Pakistan cuts Karachi port charges by 50% in climate-focused maritime reform push
Updated 19 July 2025
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Pakistan cuts Karachi port charges by 50% in climate-focused maritime reform push

Pakistan cuts Karachi port charges by 50% in climate-focused maritime reform push
  • Government says efficient port cuts vessel idle time, fuel use and supports greener supply chains
  • Pakistan also aims to cut container dwell time by 70% using AI and drone-based port monitoring
Updated 19 July 2025
Arab News Pakistan

ISLAMABAD: Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry on Saturday announced a 50% reduction in Karachi Port charges, in a move aimed at cutting trade logistics costs and promoting climate-resilient, low-emission shipping practices.

The reform is part of a broader strategy to modernize Pakistan’s maritime sector and reduce its carbon footprint, as the country works to align trade infrastructure with global environmental standards.

“By lowering operational costs and streamlining logistics, we are not only boosting trade competitiveness but also contributing to climate resilience,” Chaudhry said in a statement issued by his office.

The new measures include halving charges related to port handling, vessel services and storage while scrapping a previously planned annual five percent fee hike.

Officials say the move is expected to benefit exporters of dry bulk goods and reduce emissions by improving port turnaround times and easing congestion.

“This isn’t just a financial measure,” Chaudhry added. “It’s a pivot toward low-impact, future-ready maritime trade. A more efficient port reduces idle time for vessels, lowers fuel consumption and supports greener supply chains.”

Karachi Port is one of Pakistan’s largest and busiest deep-water seaports, handling a significant share of the country’s import-export traffic.

Officials say the reforms will enhance the port’s efficiency while positioning it as a regional hub for climate-conscious maritime activity.

The announcement follows recent steps by the ministry to improve logistics and infrastructure, including the formation of a high-level committee to reduce container dwell times by 70%, and the deployment of advanced technologies such as artificial intelligence and drones for port monitoring.

Topics: Karachi port Maritime Affairs Minister Junaid Anwar Chaudhry

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