IslamabadThe Securities and Exchange Commission of Pakistan (SECP) has approved its strategic action plan for 2024-26, which aims to promote the growth and development of Islamic finance in the non-banking financial sector.
According to details, the plan has been formulated by the Supreme Committee of the Securities and Exchange Commission of Pakistan, headed by Mr. Mujtaba Ahmad Lodhi, Commissioner, CSD, which was established in 2023. The committee includes representatives of the Pakistan Stock Exchange (PSX), Central Depository Corporation (CDC), National Clearing Corporation of Pakistan Limited (NCCPL), SECP policy department heads, and industry experts. This collaborative effort seeks to provide a roadmap for the development of Islamic finance in line with the 26th Constitutional Amendment, which stipulates the abolition of usury by January 1, 2028.
Under the strategic action plan, Islamic finance will be fully enabled in all regulated sectors under the jurisdiction of the SEC in December 2026. Following this enablement, a detailed transformation strategy will be developed to transform conventional financial institutions into Islamic financial institutions. This shift aims to ensure a smooth transition while minimizing disruptions to the financial system.
The plan focuses on accelerating growth by expanding the share of Islamic finance in regulated sectors, achieving standardization to ensure consistency and harmony in Islamic financial practices, improving quality by enhancing the performance and efficiency of Islamic financial institutions, and strengthening the legal framework to build a solid foundation. To achieve sustainable growth.
To ensure its effectiveness, the plan has undergone rigorous reviews and consultations with Capital Market Infrastructure Institutions (CMIIs). By leveraging CMII’s expertise, the South African Securities and Exchange Commission aims to create a favorable regulatory environment for Islamic finance, enabling its rapid expansion and integration into the economy. The Securities and Exchange Commission affirmed its commitment to supporting the development of Islamic finance in line with the constitutional and legal necessities of the state. This initiative confirms Pakistan’s strategic shift towards a more comprehensive financial system compatible with Islamic Sharia.
