SBP Adopts AAOIFI Shariah Standards For Islamic Banking

The State Bank of Pakistan (SBP) has adopted Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI) Shariah Standards for Islamic banking in Pakistan. According to a circular issued on Tuesday, SBP said, ” With a view to further strengthen Shariah compliance framework and harmonize the Shariah practices in Islamic banking industry, following AAOIFI Shariah Standards have been adopted with immediate effect subject to clarifications/amendments”. The adoption of these Standards is in addition to applicable regulations, instructions and directives issued by SBP from time to time. Failure to comply with these instructions may invoke penal action under the relevant provisions of the Banking Companies Ordinance 1962, SBP added.