Page 25 - CMA Journal (Mar-Apr 2025)

Exclusive Interview
EXCLUSIVE INTERVIEW

“
For Islamic banking, SBP has

already rolled out a comprehensive

transformation plan that includes legal

and regulatory developments. It is

expected that the proposed

law will establish a structure

for the Islamization of financial

markets, institutions, products,

and services within the regulatory

ambit of the SECP “

Mr. Tariq Naseem, FCMA

Head of Islamic Finance Department

Securities and Exchange Commission
of Pakistan (SECP)

ICMA: What are the main objectives and functions of Islamic social finance, in accordance with the provisions
the Islamic Finance Department at SECP, and how of the Companies Act, 2017.
does it support the growth of Islamic finance in
The SECP has strengthened its Islamic Finance
Pakistan?
Department to spearhead the drive of legal and
Tariq Naseem: Let me first explain the mandate of the regulatory development, promotion of new
Securities and Exchange Commission of Pakistan (SECP) Shariah-compliant institutions, markets and financial
for regulating Islamic finance. One can notice that the products, capacity building, international collaboration,
SECP has a relatively vast regulatory mandate covering and innovation. Apart from serving as Registrar for the
the capital market, insurance, non-banking finance Modaraba Sector, I am also responsible for leading
companies, pension funds, and the corporate sector. The Islamic finance-related initiatives that include Shariah
Islamic financial services that we regulate include (a) certification of securities including Sukuk, mutual funds,
Islamic institutions like Modarabas, Takaful operators, REITs schemes, etc.; Shariah certification of companies
Islamic NBFIs, Shariah-compliant businesses, and Shariah including NBFCs, securities brokers, listed companies,
advisors; (b) Islamic instruments like Shariah-compliant etc.; registering Shariah advisors; administration of
securities, Sukuk, and Islamic commercial papers (ICPs); Shariah Governance Regulations, 2023; assisting all
and (c) Islamic collective investment schemes like Islamic regulated sectors for transition in accordance with
mutual funds, Islamic exchange-traded funds (ETFs), and Shariah principles in light of SECP’s guidelines for
Shariah-compliant real estate investment trusts (REITs). offering Islamic financial services, 2023; and arranging
Non-profit organisations are also being registered and capacity building and advocacy activities for promotion
governed in the area of social development that includes of Islamic finance.

ICMA’s Chartered Management Accountant, Mar-Apr 2025 23