Pakistan with a population of approximately 140
million people is one of the largest Muslim countries in the world.
Being a country with majority people following the Islamic faith,
Islamic Banking is a natural fit. The guiding principles for Islamic
societies is a collective set of rules and laws referred to as Shariah.
Shariah laws apply to all aspects of the Muslim life and finance is no
The future of the Islamic Banking industry in
Pakistan is extremely promising as the State Bank of Pakistan through
its proactive regulatory and promotional policies is creating a
conducive environment for market players. There is enormous potential
in this area and as such, we must focus our energies and exploit this
opportunity to its fullest.
Keeping this in mind and the requirements of our
customers who wanted Shariah compliant financial products, Standard
Chartered Bank in Pakistan became the first international bank to
receive an Islamic Banking Branch licence from the State Bank of
Pakistan and the first international bank to start offering Islamic
banking products to our customer base through a dedicated Islamic
Banking Branch. Our offering at present includes Islamic Current
Accounts, Islamic Auto Finance, Islamic Home Financing , Short-term
Murabaha financing and Islamic Import Financing. Standard Chartered
Bank is the bank in Pakistan to launch Musharaka based Auto Finance
Our product offering has been developed through
extensive research and guidance from an independent Shariah
Supervisory Committee and our dedicated Islamic Banking team. We are
focusing our efforts to ensure that all our Islamic products comply
with Shariah principles. The bank takes guidance from renowned
scholars and all its products are supervised and reviewed by an
independent Shariah Supervisory Committee. The current members of
Standard Chartered's Shariah Supervisory Committee are Dr. Abdul
Sattar Abu Ghuddah based in Jeddah and Sheikh Nizam Yaquby from
Bahrain. Both Dr. Abu Ghuddah and Sheikh Yaquby are respected scholars
in the field of Islamic finance and investment.
Our Islamic Home finance product is structured
under the concept of Diminishing Musharaka. Under this concept, the
customer and the bank enter into participation where bank may provide
a larger share of the purchase price of the property. As part of the
agreement the bank will allow usage of the property to the customer
over a period and the customer makes regular payments or rent for the
use of property. The customer will make regular scheduled investments
in the participation to increase its share in the property. Thus with
each payment customer ownership in the property grows. Once the
customer has purchased the complete share, he becomes free and clear
title owner of the property.
MusharaCar is our innovative Islamic Auto Finance
product which is being offered under the concept of Diminishing
Musharaka. Under this concept, the bank and the customer becomes a
partner in the car. The customer purchases the bank's share over the
period of the financing and also pays rent for the use of bank's
share. Once the customer has purchased the complete share, he becomes
free and clear title owner of the car.
Our Islamic Current Account provides an end-to-end
solution to our customers in total compliance with Shariah principles.
The product facilitates a non-interest bearing deposit for customers
and with the help of established Shariah principles it is ensured that
the funds deposited in the account are deployed in a Shariah-compliant
We see a promising future for the Islamic Banking
industry in Pakistan and are confident that very soon we will witness
the introduction of a full range of Islamic Banking products that will
compete with the conventional products.
Standard Chartered has also started Islamic Banking
in UAE and Bangladesh and has a very well established setup in
Malaysia, which makes Standard Chartered Bank a leading provider of
Islamic Banking services across the Muslim World.