Yousef Hassan Khalawi, secretary general of the Islamic Chamber of Commerce and Development (ICCD), said the country could attract a larger share of the market by developing new Shariah-compliant financial products, improving regulations and building specialized expertise.
He made the remarks during the Securities and Exchange Commission of Pakistan (SECP) Talk Series on Islamic finance.
Pakistan has several advantages
Khalawi said Pakistan already has several strengths to build on.
These include a large Muslim population, a sizeable overseas community, a growing Islamic finance sector and a strong pool of financial professionals.
But he said the country now needs to think beyond traditional Islamic banking.
New products should be designed for both Pakistani and international markets, particularly in fast-growing areas such as fintech.
Waqf could fund development
Khalawi also said Islamic finance should have a wider impact on society instead of focusing only on financial transactions.
He highlighted Waqf-based investment structures as one promising opportunity.
Professionally managed and transparent listed Waqf models could allow people to contribute even small amounts toward projects in areas such as education, healthcare and infrastructure.
That could turn small individual contributions into larger pools of investment.
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Agriculture needs more Islamic financing
Agriculture is another sector with significant potential.
Khalawi called for specialized Shariah-compliant financing products and greater expertise to help farmers and agricultural businesses access funding.
The discussion also explored Qard Hassan, an interest-free lending model.
Fintech could make such financing easier to access while reducing the cost of delivering small loans.
Better standards and training needed
Khalawi said the Islamic finance industry also needs common Shariah standards and stronger professional training.
For Pakistan, the opportunity is bigger than simply expanding Islamic banking.
With the right products, regulations and expertise, the country could use Islamic finance to attract investment, support businesses and help fund projects across the wider economy.
