Islamic finance pivotal for economic growth

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, said on Thursday that Islamic finance and Islamic capital markets could play a pivotal role in helping Pakistan achieve macroeconomic stability and sustainable growth. Addressing the inaugural session of the Second International Islamic Capital Markets Conference & Expo in Karachi, the minister stated that while Pakistan had faced significant economic challenges in recent years, these issues were now being effectively addressed, and the country was on the right trajectory toward stability. He noted that Islamic finance, particularly Islamic capital markets, could contribute significantly through instruments such as sukuk, equity funds, and Shariah-compliant investment vehicles, which not only attract investment but also reduce reliance on interest-based borrowing.