ISLAMABAD: Banks should develop innovative, cost effective and business friendly Islamic Banking products to facilitate the smooth growth of business activities in the country.

President, Islamabad Chamber of Commerce & Industry (ICCI) Zahid Maqbool expressed these views while addressing a seminar on Islamic Banking jointly organized by Meezan Bank Limited and Islamabad Chamber of Commerce at ICCI. The event was attended by a large number of business community and other stakeholders.

He said Islamic banking had captured 12 percent share in the banking sector of Malaysia while in Pakistan this mode of banking could achieve only about 5 percent share so far which needs to be enhanced.

He said many people did not know what modarba, murabaha, musharika or ijara was and stressed that it was the responsibility of the industry experts as well as the government to increase awareness regarding Islamic banking. Even though banks have spent a lot in marketing Islamic banking products, they also need to fully inform their potential customers about the matter in which they operate which makes them religiously and ethically correct, he said.

The ICCI chief also underscored the need for promoting Islamic micro finance in the field of micro credit, which would be a step forward to eliminate poverty from Pakistan. He said tax laws and the SECP instruments relating to the Islamic banking should be fine-tuned so that this mode of banking was promoted and potential existing in the country was fully taped.

Giving detailed presentation to businessmen on Islamic Banking, Saleem Khan, Regional Manager North and Sohail Khan, Head of Training Department, Meezan Bank Limited said that Islamic Banking had a bright future in Pakistan as it had shown impressive growth as compared to conventional banking. They said the government has provided a supportive policy and regulatory framework for Islamic banking due to which this mode of banking was enjoying rapid growth.

They said Meezan Bank was providing many Islamic banking products for starting new businesses, import of machinery & raw materials and businessmen should utilize these products for expanding their business ventures. They said that Meezan bank was pioneer in launching the Islamic financing in Pakistan and would continue to spread the Islamic mode of banking for industrial and individual's needs. They said Meezan Bank started Islamic banking in 2002 and now it has around 200 branches in Pakistan covering remote areas across Pakistan as well.