Pakistan Well Placed To Tap Global Islamic Finance Market: ICCD Secretary General.
✧ GENERATE BRIEFING +
Pakistan is uniquely positioned to expand its footprint in the global Islamic economy by advancing fintech solutions, listed Waqf models, and Shariah-compliant agricultural financing. Speaking at an SECP Talk Series event in Islamabad, Islamic Chamber of Commerce and Development (ICCD) Secretary General Yousef Hassan Khalawi highlighted that Pakistan's large Muslim population, active diaspora, and deep talent pool serve as key drivers for scaling domestic and international Islamic financial offerings. SECP Commissioner Imtiaz Haider revealed that 309 listed companies on the Pakistan Stock Exchange representing 65% of total market capitalization at Rs13.2 trillion are now Shariah-compliant, alongside a surge in Islamic mutual fund assets to Rs2.2 trillion.
Pakistan possesses immense potential to expand its share in the global Islamic economy by developing innovative Shariah-compliant financial products, strengthening regulatory frameworks, and building specialized professional expertise.
Speaking at the Securities and Exchange Commission of Pakistan (SECP) Talk Series titled “Shaping the Future of Islamic Finance: Pakistan and the Global Perspective,” Yousef Hassan Khalawi, Secretary General of the Islamic Chamber of Commerce and Development (ICCD), emphasized that Pakistan’s demographic advantage, sizeable diaspora, and growing Islamic financial ecosystem provide a solid launchpad for international expansion.
Innovation, Waqf Structures, and Agricultural Finance
Khalawi stressed that the global Islamic finance industry must adopt a forward-looking approach, particularly by leveraging fintech to build products capable of serving both domestic and international markets.
Discussing the principles of Maqasid al-Shariah, he noted that Islamic finance should extend beyond transactional mechanics to foster broader socio-economic development. He pointed to listed Waqf structures as an effective model to mobilize individual contributions for public infrastructure, healthcare, and education through transparent and professionally managed channels.
Khalawi also identified agricultural finance as a major underutilized frontier, advocating for tailored Shariah-compliant tools and specialized expertise to support the sector. Additionally, he highlighted Qard Hassan (interest-free lending) as an area where digital financial technology can significantly reduce distribution costs and expand financial inclusion.
Strong Momentum in Capital Markets and Fund Management
SECP Commissioner Imtiaz Haider outlined the accelerated growth of Islamic finance within Pakistan’s non-banking financial sector and capital markets.
Key metrics shared during the session include:
- Market Capitalization Share: 309 securities listed on the Pakistan Stock Exchange (PSX) are Shariah-compliant, accounting for 65% of total market capitalization with an aggregate value of Rs13.2 trillion.
- Asset Growth: Assets managed by Islamic mutual funds surged from Rs722 billion in June 2023 to Rs2.2 trillion in June 2026. Out of 389 mutual funds active in Pakistan, 197 operate on Shariah-compliant principles.
- Regulatory Expansion: The SECP has introduced dedicated frameworks for Islamic microfinance, housing finance, investment finance, and Pakistan’s first Shariah-compliant credit risk-sharing model.
The talk was moderated by Dr. Tariq Naseem, Head of SECP’s Islamic Finance Department, and attended by SECP Chairman Dr. Kabir Ahmed Sidhu, commissioners, industry leaders, and financial experts. The session concluded with a presentation of a commemorative shield to the ICCD Secretary General.
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