Call To Adopt Islamic Economic, Banking System

LAHORE: Speakers at a conference stressed the need for adopting Islamic economic, finance and banking systems to address a host of economic problems faced by humanity.

They were addressing the sessions on the first day of the second ‘World Islamic Economic and Finance Conference’ (WIEFC) under the aegis of Minhaj University Lahore (MUL) on Saturday, titled as “Adaptability and Dependability: Oriental and Empirical Innovations in Islamic Finance”.

The two-day conference was participated by noted national and foreign experts of the economy, top experts of business and banking circles, investors, traders and students and research fellows of various academic and financial institutions from United States, United Kingdom, Australia, Malaysia, Netherland, Uzbekistan, and Saudi Arabia.

They included Prof Dr Rodney Wilson, Professor Emeritus at Durham University and INCEIF, Prof Dr M Ishaque Bhatti, Director Islamic Banking and Finance Programme, La Trobe University, Australia, Dr Mughees Shaukat, Head of Islamic Finance, College of Banking and Financial Studies, Central Bank of Oman, Dr Waqar Masood, former federal secretary finance, Dr Nadeemul Haque, former VC PIDE Quaid-e-Azam University, Islamabad, Dr Humayun Dar, DG Cambridge Institute of Islamic Finance, UK among many other scholars of international repute.

They dwelled on the topics like lessons from global experiences, inclusive financial development, economic analysis of Islamic banking and finance, and regulation and stability of Islamic banking and finance.

In his address, Provincial Minister for Higher Education Raja Yasir Humayon stressed the need for the implementation of the Islamic banking and finance system. The establishment of Islamic banks is the dire need of the time. Islam is the only religion where there is a strong pillar of Zakat. For the best economics structure and environment, a system should be formulated based upon barren money, gifts, alms, and charity. He said it was the age of materialism and rate race.

Dr. Suleman Shah said Islamic banking system was matchless; but, due to the fast urbanization, the Islamic banking system was not achieving its desired goal. The Islamic finance system is asset based. Without creating an asset-based system, the foundation of Islamic finance banking cannot reap the fruit. Innovation is the need of the Islamic banking system. On these vary basis, the concrete infrastructure of the Islamic banking system can be built up.

Dr. Toseef Azid, Professor of Economics at Qasim University, Saudi Arabia said the Islamic economic system was based on justice, Ihsan, Sila-i-Abraham & love and it creates the environment where everyone looks after each other.

According to the teachings of Islam, all Muslims are brothers and Muslim Ummah is just like one body. If any part of the body feels pain the whole body feels it. The same rule can be applied in the debt market.

He elaborated the different cases where debt and its instruments are harmful to society and where these will work for the protection and construction of the Islamic community.

Dr. Maryam Dikko from Ahmedu Bella University Zaria, Nigeria while talking on corporate governance and Takaful stressed the need for the formation of corporate governance structure that could address the separation of shareholders and Takaful operators and participants.

Muhammad Ayub from Riphah International University Islamabad while expressing his views on linking Islamic finance to real economy said that the major strength of Islamic economy lies in the total ban on interest, Gharar/ short selling.

He urged the Islamic finance scholars and the practitioners to ensure linking the finance with real business and said that it’s only possible when they confine themselves to financing the real business and production sectors and avoid all means of earning money from money.

Dr. Hussain Mohiud-din Qadri in his address said the conference was the continuity of the world-wide academic efforts of Minhaj University, Lahore for finding a solution of the socio-economic problems faced by the Muslim countries of the world including Pakistan.

The first session, presided by Minhaj University Board of Governors Deputy Chairman Dr. Hussain Mohiud-din Qadri, included the launching of a book he authored, “Islami Ikhlaqiat-e-Tijart (Urdu version of “Business Ethics in Islam”.