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Posts Tagged ‘State Bank of Pakistan

SBP issues ‘Guidelines on Islamic Financing for Agriculture’

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Points of Essence:

  • State Bank of Pakistan issues the first of its kind Guidelines on Islamic financing for agrigulture. The Guidelines will assist banks to devise shariah compliant products to cater to the agricultural needs. Riding on the most acceptable concepts of Islamic financing, the Guidelines will make it possible for Islamic finance to penetrate into the potential demand of the agriculture sector in Pakistan. Pakistan’s Online News has the report.

KARACHI: The State Bank of Pakistan today issued “Guidelines on Islamic Financing for Agriculture” to help banks develop specific Shariah compliant products in order to meet the financing needs of the farming community. These Guidelines have been developed in consultation with stakeholders while keeping in view the potential and demand for Islamic banking products in the field of agriculture.

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Written by Suapi Shaffaii

February 4, 2009 at 10:34 am

First auction of government’s Ijara Sukuk on September 15

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Points of Essence:

  • SBP has fixed September 15 to hold the first auction of a domestic bound Ijarah Sukuk with its target sale set at Rs10 billion . It is offered primarily to alleviate the Pakistani Government’s debt with the central bank.
  • The market however appears to be skeptical  about the bond as the current Islamic banks’ deposits which stood at Rs 147.361 billion at end of 2007 is too small to offer the Government any relief. Furthermore, there would not be any interest from corporations as justified by the small target set for the bond. There was also no disclosure on how frequently would the auctions of Sukuk bonds be held.
  • If there is any consolation, the issuance of bond would greatly help the Islamic banks in their liquidity management issues as they are currently awashed with unutilised funds.

By Mushfiq Ahmad

KARACHI: The State Bank of Pakistan has finally announced that the first auction of Ijara Sukuk in the domestic market would be held on September 15. It has set a target of Rs 10 billion.

The government aims to reduce its borrowing from the central bank through sale of sukuk bonds in domestic market. However, it looks unlikely that sukuk issue would be able to offer the government much help. The government last year borrowed more than Rs 688 billion from the central bank to finance its fiscal deficit. According to the “latest” Islamic Banking Bulletin of State Bank of Pakistan, Islamic banks’ deposits stood at Rs 147.361 billion at end of 2007. With such a small deposit base, it is unlikely that the government would be able to get much out of Islamic banks.

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Written by Suapi Shaffaii

September 11, 2008 at 7:17 pm

Govt launching Ijara Sukuk this week: Akhtar

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Points of Essence:

  • Pakistan Government has launched Ijara Sukuk to enhance its money market sector. This will help Islamic banks to be in parallel with their conventional counterparts in terms of the instruments availability for their liquidity management purpose.

Pakistan is working to launch the first Ijara Sukuk in the first week of Ramadan.

KARACHI: Dr Shamshad Akhtar, Governor State Bank of Pakistan, has said the government and the State Bank were working to launch the first government of Pakistan Ijara Sukuk in the first week of the Holy Month of Ramadan in order to support the efforts to diversify the borrowings mix.

“This will not only help deploy the liquidity available with Islamic banks but also help the government to diversify its debt,” she said in a press statement issued on Thursday.

She added that given the growth in the Islamic banking industry, Shariah-compliant government securities were imperative to bring the Islamic banks parallel to their conventional counterparts in terms of instruments available for liquidity management.

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Written by Suapi Shaffaii

September 8, 2008 at 10:05 am

SBP issues guidelines on ‘Islamic Agriculture Finance’

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Points of Essence:

  • The State Bank of Pakistan has issued a draft guidelines on Islamic Agriculture Finance to facilitate agriculture financing.
  • The guideline covers Islamic modes of financing i.e ‘Murabaha, Ijara, Musawamah, Salam, Istisnaa, Musharakah, Diminishing Musharakah, Mudarabah, Musaqaat, and Muzaraat’ to finance farm and non-farm sector activities including livestock, fisheries, poultry, orchards etc.
  • It applies to Islamic banks and conventional banks with Islamic windows they they could develop their own products to meet the financing needs of agri and rural community in a Shariah-compliant manner.
  • The State Bank of Pakistan is a Council and Full member of the Islamic Financial Services Board.

KARACHI: The State Bank of Pakistan (SBP) issued draft guidelines on ‘Islamic Agriculture Finance’ on Monday aiming at facilitating Islamic banks as well as conventional banks involved in agriculture financing.

A Task Force constituted by governor SBP, on ‘Islamic Agricultural Finance’ has prepared draft guidelines. The Task Force comprised of senior SBP officials, Shariah Advisors and heads of agriculture departments of commercial banks. The draft guidelines broadly cover Islamic modes of financing like ‘Murabaha, Ijara, Musawamah, Salam, Istisnaa, Musharakah, Diminishing Musharakah, Mudarabah, Musaqaat, and Muzaraat’ that can be used for meeting the financing requirements of farm and non-farm sector activities including livestock, fisheries, poultry, orchards etc.

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Written by Suapi Shaffaii

September 2, 2008 at 3:24 am

SBP to include SMEs, agri, micro finance in Islamic Banking soon

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Points of Essence:

  • The State Bank of Pakistan will soon include SMEs, agriculture and micro finance to enhance its existing regulatory framework on Islamic finance in Pakistan.
  • The new approach will aptly apply its 5 regulatory principles to focus on evolving a regulatory framework, enhancing the spectrum of Islamic Banking, strengthening Shariah compliances mechanism, consulting internal and external stakeholders for better liaison and strengthening human resources.
  • SBP targets to enhance market share of Islamic Banking to 12 percent by the year 2012.

By Nauman Tasleem

LAHORE: The State Bank of Pakistan (SBP) would soon include Small and Medium Enterprises (SMEs), agriculture and micro finance to regulate and strengthen Islamic Banking.

This was stated by Pervez Said, Director Islamic Banking Department and Advisor to SBP Governor during the 2nd International Conference on Islamic Banking and Finance held at Aiwan-e-Iqbal on Monday, which was arranged by Al Huda Centre for Islamic Banking and Economics. Bankers from different countries participated in the international conference held to promote Islamic Banking in the country.

He said, “SBP would broaden the horizon of Islamic Banking and agriculture, while SMEs and micro finance would be given special attention in the new policy.”

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Written by Suapi Shaffaii

August 26, 2008 at 3:06 am