Islamic finance critical to fixing global challenges: Ahsan Iqbal

Planning Minister Ahsan Iqbal on Tuesday emphasised the critical role of Islamic finance in driving sustainable economic growth and addressing global challenges such as climate change. He was speaking as the chief guest at the 4th World Islamic Finance Forum, organised by the Institute of Business Administration (IBA), which brought together experts to explore the theme, “Islamic Finance, Innovation, Climate Finance and Sustainable Growth.” The minister noted the projected growth of the Islamic finance industry to over $6 trillion by 2027 as per the 2023 Islamic Finance Development Report, and highlighted its foundation in the ethical and sustainable principles of Sharia law. These principles, he explained, ensure an equitable and just economic system through practices such as profit and loss sharing (Mudaraba and Musharaka), the prohibition of interest (Riba) and social responsibility through zakat and waqf.