After years of pondering over ways to give an impetus to promoting the growth of Islamic banks, Pakistan’s central bank is keen to launch the first ever Islamic equivalent of regular treasury bills. The planned move, according to Shamshad Akhtar, the central bank governor, promises to create an important investment opportunity for the small community of Pakistan’s Islamic banks, whose share of the market remains well below 3%.
Ms Akhtar is eager to point out that the pace of growth of Islamic banks is promising enough, to the extent that there are many prospective takers across the predominantly Muslim country. Issuing new equivalents of treasury bills that are compatible with Islamic norms, however, would give an important investment opportunity to the six Islamic banks that have so far been licensed in Pakistan.
