Page 69 - CMA Journal (Mar-Apr 2025)

Focus Section

Promising Future of Islamic Banking • Development of purpose-built, diversified financial
products
The future of Islamic banking appears highly promising
• Mechanisms to address currency parity fluctuations
and offers strong potential for cushioning economic
growth. Financial institutions project Islamic finance to • Mitigation of inflationary pressures
be the world’s fastest-growing banking sector in the • Prevention of artificial market bubbles
coming years, with a conservative estimate of over 20%
• Elimination of speculative and manipulative financial
annual growth in deposits. Bankers worldwide are
practices
increasingly recognizing that Islamic banking is not only
• Transition from a managed economy to a
viable but also rapidly expanding in both demand and
value-driven economy
scope. Notably, Japan is planning to introduce Islamic
banking, reflecting growing global acceptance. • Transformation of a taxed and paper-based
economy into a socio-economic model
In the near future, emerging capital markets,
• Control and reduction of paper inflation
microfinance institutions, and funding platforms are
expected to evolve their products around Islamic finance • Converged management practices with ethical and
principles, especially across larger global regions. This strategic alignment
expansion positions Islamic finance as a central pillar in Path Forward for Pakistan
reshaping the financial ecosystem.
For countries like Pakistan, achieving global benchmarks
Contributions and Growth of the Islamic
in Islamic banking and finance asset accumulation
Banking and Finance (IBF) Sector requires a comprehensive transformation of the
economy in line with Islamic Economic System (IES)
The contributions of the IBF sector are significant and
principles. This transformation should be guided by:
serve as indicators of its sustainable growth and global
relevance. Islamic banking and finance assets (in billion • Prevision – Anticipating future trends and preparing
US dollars) in emerging markets are already substantial: accordingly

• Saudi Arabia: $698.2 billion • Ideas – Generating innovative models for inclusive
financial growth
• Iran: $629.4 billion
• Strategy – Designing coherent frameworks for
• Malaysia: $570 billion
sustainable development
• UAE: $234.2 billion
• Motivation – Inspiring leadership and stakeholder
• Kuwait: $132.3 billion alignment
• Bahrain: $95.6 billion • Actions – Implementing impactful projects, policies,
• Indonesia: $99 billion and institutional reforms
• Turkey: $62.9 billion Core Foundations for IES Strategy
• Qatar: $143.9 billion Formulation
• Bangladesh: $14.9 billion
To develop a robust Islamic economic framework, the
Top 10 Countries with Islamic Banking Presence following foundational elements must be prioritized:
• A strong vision for development that integrates
Islamic banking now has a strong foothold in several social, spiritual, and economic goals
countries across different continents. The top 10
countries where Islamic banking is present include: • Effective ideas management and collaborative
teamwork structures
• Malaysia, Indonesia, Oman, Qatar
• Motivational leadership that drives planning and
• Iran, Brunei Darussalam execution
• United States, United Kingdom, France, Germany • Concrete actions across projects and initiatives
aligned with Islamic economic values
Strategic Advantages of Islamic Economics (IE),
About the Author: The author currently serves as the Deputy
Islamic Banking (IB), and Islamic Finance (IF) Manager of Finance at Attock Refinery Limited (Attock Group). He is a
Fellow Member of the Institute of Chartered Accountants of Pakistan
Unlike conventional economics (CE), the Islamic system and an Associate Member of the Pakistan Public Finance Accountants.
offers several superior value propositions, which make it With experience spanning Chartered Practicing CA firms, NGOs, and
more relevant in addressing modern financial challenges. the packaging, textile, and banking sectors, he is now contributing to
Key advantages include: team development within the premium energy sector.

ICMA’s Chartered Management Accountant, Mar-Apr 2025 67