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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 urges IAEA to take clear position on Israel’s strikes on Iranian nuclear sites

Pakistan urges IAEA to take clear position on Israel’s strikes on Iranian nuclear sites
Updated 53 sec ago
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Pakistan urges IAEA to take clear position on Israel’s strikes on Iranian nuclear sites

Pakistan urges IAEA to take clear position on Israel’s strikes on Iranian nuclear sites
  • Pakistan’s envoy to the UN urges the Security Council to halt Israel’s military actions
  • He also stresses the IAEA must be allowed to continue its verification work ‘unimpeded’
Updated 53 sec ago
Usama Iqbal Khawaja

ISLAMABAD: Pakistan has called on the International Atomic Energy Agency (IAEA) to clearly state its legal position on last week’s Israeli strikes targeting nuclear facilities in Iran while highlighting their grave implications for regional and international security.

The call came during an emergency meeting of the United Nations Security Council on Friday, after Israel launched airstrikes about a week ago that killed several senior Iranian military commanders and nuclear scientists, triggering a direct military confrontation between the two countries.

Israel’s attacks came as Tehran was engaged in negotiations with the United States to reach a nuclear agreement. Iran has repeatedly stated it has no intention of building nuclear weapons but will not surrender its right to a peaceful nuclear program or halt uranium enrichment activities.

Israel, however, contends that Iran is close to developing a bomb. The United States has backed Israel in the conflict and called for Iran’s “complete surrender,” insisting Tehran must not be allowed to obtain a nuclear weapon.

Pakistan, in its remarks to the Council, reiterated its condemnation of Israel’s “unjustified and illegitimate aggression,” describing the attacks on nuclear facilities as “deeply troubling.”

“It is the responsibility of the IAEA to clearly pronounce its legal position with regard to such attacks as well as to report to its Board of Governors and to the Security Council about the legal, safeguards, safety and security implications of such attacks,” Pakistan’s Ambassador to the UN, Asim Iftikhar Ahmad, told the Council.

“The Agency should fulfil that responsibility,” he added.

The Pakistani envoy also denounced Israel’s widening war in the Middle East, including in Gaza, Syria, Lebanon and Yemen. He maintained that Tel Aviv’s attack on Iran had further inflamed an already volatile regional situation.

Ahmad also said the UN Security Council must act decisively to halt Israel’s military actions and prevent the situation from spiraling further.

He urged the Council to categorically reject Israel’s actions, promote de-escalation and support a comprehensive ceasefire.

The Pakistani envoy further called on the Council to denounce the targeting of nuclear facilities safeguarded by the IAEA, pointing out that diplomacy must remain central to resolving the Iran-Israel crisis.

“Dialogue and diplomacy in full adherence to the principles of international law and the UN Charter remain the only viable path to resolving the crisis,” he said. “This Council must unite in support of the Secretary-General’s call to end the fighting and return to dialogue and negotiations.”

Ahmad also stressed that the IAEA must be allowed to continue its verification work “unimpeded,” and should operate in an “impartial and apolitical manner” to ensure credible and objective reporting on matters under its mandate.

Topics: Pakistan IAEA Israel Iran conflict

EU imposes measures to curb ethanol imports from Pakistan

EU imposes measures to curb ethanol imports from Pakistan
Updated 20 June 2025
Reuters
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EU imposes measures to curb ethanol imports from Pakistan

EU imposes measures to curb ethanol imports from Pakistan
  • Pakistan became the EU’s top source of non-fuel ethanol in 2024, supplying over a quarter of total imports
  • EU ethanol producers welcomed the new two-year measure, though many had hoped for a three-year term
Updated 20 June 2025
Reuters

PARIS: The European Commission has ended tariff preferences for non-fuel ethanol imports from Pakistan, answering EU ethanol makers’ calls that a surge in cheap imports from the Asian country was pressuring prices and disturbing markets.

Last year, ethanol imports from Pakistan accounted for more than a quarter of all non-fuel ethanol imports, making Pakistan the largest source of imports to the EU, the Commission said in its decision published in the EU’s Official Journal on Friday.

The rise in total ethanol imports has been lasting for several years with EU customs data showing imports of non-fuel ethanol into the EU nearly doubling between 2021 and 2024 to reach 726,000 metric tons in 2024, from about 376,000 tons in 2021, it said.

Of this, Pakistani ethanol imports jumped by almost 300 percent to 393,590 tons between 2021 and 2022 and were still 244 percent above 2021 imports in 2023.

Meanwhile, EU non-fuel ethanol output dropped. Last year it was 8 percent lower than in 2021, it said.

The data and information available showed a coincidence in time between the evolution of imports from Pakistan and the serious disturbance to Union markets, the Commission said.

“The Commission considers that there is evidence of a serious disturbance in the Union market for non-fuel ethanol, characterised by a significant increase in imports at significantly lower prices compared to Union producers and a decline in Union production,” it said.

EU ethanol makers welcomed the move, set to last two years, although they had hoped for three-year duration and said the fact it did not include ethanol used in fuel raised concerns over potential circumvention.

Topics: GSP+ status Pakistan exports Pakistan EU Ties

Pakistan reports new polio case in northwest, raising 2025 tally to 12

Pakistan reports new polio case in northwest, raising 2025 tally to 12
Updated 20 June 2025
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Pakistan reports new polio case in northwest, raising 2025 tally to 12

Pakistan reports new polio case in northwest, raising 2025 tally to 12
  • Pakistan and Afghanistan remain the only countries where polio is still endemic
  • Pakistan reported 74 cases in 2024, raising alarm over a possible resurgence
Updated 20 June 2025
NAIMAT KHAN

KARACHI: Pakistan’s polio eradication program on Friday said a new wild poliovirus case had been detected in the country’s northwestern Khyber Pakhtunkhwa province, bringing the total tally of 2025 cases to 12.

Polio is a paralyzing disease with no cure, making prevention through vaccination critical. Multiple doses of the oral polio vaccine, along with the completion of the routine immunization schedule for all children, are essential to build strong immunity against the virus.

The country conducted three nationwide vaccination campaigns in February, April and May, aiming to immunize around 45 million children across Pakistan with the support of over 400,000 frontline workers including 225,000 women vaccinators.

“The Regional Reference Laboratory for Polio Eradication at the National Institute of Health, Islamabad, has confirmed a new case of wild poliovirus in District Bannu, South Khyber Pakhtunkhwa,” the body said in a statement.

“The 33-month-old male child from Union Council Shamsikhel, District Bannu is the sixth case of polio reported from Khyber Pakhtunkhwa this year.”

Pakistan has reported 12 polio cases so far this year, including six from Khyber Pakhtunkhwa, four from the southern Sindh province and one each from the populous Punjab province and the northern Gilgit-Baltistan region.

Pakistan, one of the last two countries where polio remains endemic along with Afghanistan, has made significant progress in curbing the virus, with annual cases dropping from around 20,000 in the early 1990s to just eight in 2018.

However, the country reported an alarmingly high number of 74 cases in 2024, after six in 2023 and only one in 2021.

Health Minister Mustafa Kamal on Thursday claimed that Pakistan has recorded a 99 percent decline in polio cases, as he urged global vaccine organization Gavi to invest more in efforts to “train and retain” vaccinators.

Pakistan launched its polio eradication program in 1994, but its efforts have repeatedly been hindered by widespread vaccine misinformation and resistance from hard-line religious groups who claim immunization campaigns are a Western conspiracy to sterilize Muslim children or a front for espionage.

Militant groups have also targeted polio workers and police officials providing them security, often with deadly attacks that have hampered vaccination drives, particularly in the country’s remote and conflict-prone regions.

Topics: Pakistan Polio Service Polio Vaccination Polio cases in Pakistan

Pakistan beat France 3-2 in penalty shootouts to reach FIH Hockey Nations Cup final

Pakistan beat France 3-2 in penalty shootouts to reach FIH Hockey Nations Cup final
Updated 20 June 2025
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Pakistan beat France 3-2 in penalty shootouts to reach FIH Hockey Nations Cup final

Pakistan beat France 3-2 in penalty shootouts to reach FIH Hockey Nations Cup final
  • PM Shehbaz Sharif congratulates team on their win, paying tribute to players and the management
  • Pakistan boasts proud hockey legacy by winning three Olympic gold medals and four World Cup titles
Updated 20 June 2025
Usama Iqbal Khawaja

ISLAMABAD: Pakistan’s national hockey team advanced to the FIH Men’s Nations Cup final in Malaysia after defeating France 3-2 in penalty shootouts, the International Hockey Federation said on Friday.

The FIH Men’s Nations Cup is being played in Kuala Lumpur from June 15 to 21 at the National Hockey Stadium that brought together eight top-ranked teams competing with each other.

“Pakistan edge France to make it to their first FIH Hockey Men’s Nations Cup final,” International Hockey Federation said in a post on X.

“Excellent goals in the second half followed by amazing goalkeeping in the shootout,” it continued, “This is Pakistan’s first FIH final in more than a decade.”

Prime Minister Shehbaz Sharif praised and congratulated the Pakistan hockey team on their victory, paying tribute to the players and team management.

“The national hockey team delivered an outstanding performance throughout the tournament,” he added. “The team has made the nation proud and won our hearts.”

Sharif said he would also pray for Pakistan’s victory in the final scheduled for June 21, expressing hope that the country will soon regain its lost glory in the field of hockey.

Pakistan will play the winner of the second semifinal between New Zealand and South Korea.

Hockey is Pakistan’s national sport.

The national team boasts a proud legacy with three Olympic gold medals in 1960, 1968 and 1984 along with four World Cup titles in 1971, 1978, 1982 and 1994.

Hockey in Pakistan has faced a sharp decline in recent decades due to administrative challenges, underinvestment and inadequate infrastructure.

Renewed efforts are underway to revive the game with increased government support, youth development initiatives and greater international engagement aimed at restoring Pakistan’s former glory in the sport.

Topics: Pakistan Hockey Pakistan hockey team FIH Men’s Nations Cup

Pakistan PM orders expansion of national shipping fleet to cut $4 billion trade cost

Pakistan PM orders expansion of national shipping fleet to cut $4 billion trade cost
Updated 20 June 2025
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Pakistan PM orders expansion of national shipping fleet to cut $4 billion trade cost

Pakistan PM orders expansion of national shipping fleet to cut $4 billion trade cost
  • Shehbaz Sharif directs national shipping authority to submit plan to reduce freight burden
  • Pakistan depends on foreign carriers due to a very limited fleet of government vessels
Updated 20 June 2025
Hasaan Ali Khan

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday directed authorities to lease new ships to expand the Pakistan National Shipping Corporation’s (PNSC) fleet, aiming to reduce the $4 billion annual foreign exchange burden on sea-based trade.

The directive comes as Pakistan looks to bolster its maritime trade capacity and reduce reliance on foreign shipping lines, which officials say significantly contributes to the country’s widening trade deficit and puts pressure on foreign exchange reserves.

Pakistan’s sea trade plays a vital role in its economy, with over 90 percent of the country’s imports and exports transported by sea.

“The prime minister directed that ships be acquired on lease to expand the fleet of the PNSC,” the PM Office said in a statement following a meeting on PNSC affairs chaired by Sharif.

“He noted that due to the limited number of ships in the PNSC fleet, the national exchequer incurs a loss of $4 billion annually in foreign exchange on sea-based trade.”

Sharif instructed authorities to present a strategy within two weeks for the PNSC to eliminate this burden on the national treasury on account of freight charges.

The development comes as Pakistan plans to enhance its maritime trade with other countries, including the East African Community, and establish direct sea links with Kenya, Uganda, Tanzania, Rwanda, Somalia, Burundi, South Sudan and the Democratic Republic of Congo.

In February, Pakistan and Bangladesh also decided to begin passenger and cargo shipping services between the two countries.

The PNSC inducted two $60 million Aframax oil tankers in 2019 to strengthen its oil transportation fleet.

Pakistan also regularly collaborates with its counterparts from various parts of the world to ensure illicit activities such as smuggling, drug trafficking, and piracy are kept in check.

Topics: Pakistan National Shipping Corporation Pakistan Prime Minister Shehbaz Sharif

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