Page 15 - CMA Journal (Mar-Apr 2025)

Exclusive Interview

“
The future of Islamic finance in Pakistan
is highly promising. With strong regulatory
support, clear judicial directives to
eliminate Riba, and increasing public

preference for Shariah-compliant financial
solutions, Islamic banking is positioned for
robust growth “

Mr. Yousaf Hussain

President & CEO, Faysal Bank Limited
President, Overseas Investors Chamber of
Commerce & Industry (OICCI)

ICMA: What inspired Faysal Bank’s decision to fully their transformation, are not just offering
convert into an Islamic bank, and what were the key products—they are helping reshape the financial
challenges during this transformation? landscape in line with Islamic principles and contributing
to the broader vision of a Riba-free economy by 2028.
Yousaf Hussain: Faysal Bank’s full conversion to an
Islamic bank was inspired by a deep commitment to faith ICMA: What has been the overall impact of the
and belief, rooted in the Quranic principle of seeking the conversion on your customers, operations, and growth?
straight path. The journey reflected a vision to become a
customer-centric Islamic bank, driven by integrity, Yousaf Hussain: The conversion to a full-fledged Islamic
innovation, and care. This historic transformation—the bank has had a transformative impact on Faysal Bank’s
largest of its kind globally—was supported by strong customers, operations, and growth. Customers
leadership, employee dedication, regulatory facilitation, responded positively, appreciating the alignment with
and customer preference for Islamic banking. Key Shariah values and the enhanced trust that came with

challenges included transitioning assets responsibly, transparent, ethical financial solutions. Operationally, the
extensive employee training, managing brand bank underwent a complete overhaul—training over
transformation, and ensuring continuous stakeholder 9,000 employees, revamping systems and policies, and
engagement. The bank’s phased approach, mindset establishing a Shariah-compliant governance
change initiatives, and focus on Shariah compliance framework. This transformation fostered a purpose-
enabled a successful, sustainable shift. driven culture and operational excellence. In terms of
growth, the results have been remarkable: Islamic
ICMA: How do you view the role of Islamic banking in deposits surged from PKR 32 billion in 2015 to over PKR
advancing the Islamization of Pakistan’s economy?
1,000 billion, and Islamic financing rose to around PKR
Yousaf Hussain: Islamic banking plays a pivotal role in 580 billion, establishing Faysal Bank as one of Pakistan’s
advancing the Islamization of Pakistan’s economy by leading Islamic banks with a presence in over 340 cities.
offering a Shariah-compliant financial system that aligns ICMA: How does Faysal Bank ensure strong Shariah
with the country’s constitutional and religious compliance across all its products and services?
aspirations. It supports the Federal Shariah Court’s
directive to eliminate Riba (interest) and fosters an Yousaf Hussain: Faysal Bank ensures strong Shariah
economic environment based on equity, risk-sharing, compliance through a comprehensive governance
and ethical practices. By providing an alternative to framework anchored by a dedicated Shariah Board
interest-based finance, Islamic banking promotes comprising qualified scholars. All products and services
financial inclusion, mobilizes savings from previously undergo rigorous review and approval processes to

excluded segments, and channels funds into real ensure adherence to Shariah principles.
economic activity. Institutions like Faysal Bank, through
ICMA’s Chartered Management Accountant, Mar-Apr 2025 13