Ishrat Hussain

SBP ex-governor says Islamic banking failed to benefit common man

PESHAWAR: The Islamic banking system failed to benefit common man in the country during the last 10 years, said Ishrat Hussain, dean of Institute of Business Administration (IBA Karachi) and former governor of State Bank of Pakistan.

Addressing the opening session of a two-day international conference on “Centre of Excellence in Islamic Finance” project of the State Bank of Pakistan, organised in collaboration with Institute of Management Sciences, he said that Islamic banks, following in the footsteps of commercial banks, failed to access and financially include all people which was why poverty and financial divide was growing in the country.

Mr Hussain pointed out reasons for what he called the failure of Islamic banking system, which was introduced in the country 10 years ago, to access common people with schemes that could help to stabilise them financially and ultimately eliminate poverty.

“If the major objective of Islamic finance is to make finances available to all segments of society through inclusive finances and distribute the income from the assets equitably in an effort to reduce poverty, then unfortunately this has not been the case here,” he told the gathering, attended by bankers and scholars from Kingdom of Saudi Arabia, UK and Pakistan.

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