The third National Islamic Economic Forum 2025, organized by Saylani Welfare International Trust, began today at a local hotel in Karachi with a strong call to strengthen Pakistan’s financial system through a shift toward interest-free, Shariah-compliant banking.
Governor Sindh Muhammad Kamran Khan Tessori has expressed strong support for Prime Minister’s initiative, Urhaan Pakistan, aimed at elevating the country’s economy. Speaking at the National Islamic Economic Forum 2025, he emphasized that Pakistan, a nation founded in the name of Islam and home to a proud people, should not bear the shackles of the International Monetary Fund (IMF).
Governor Tessori praised the Pakistan Armed Forces for their decisive response during the recent conflict, which dispelled clouds of despair. He recounted how India attacked Pakistan under the cover of darkness, resulting in the martyrdom of innocent civilians and a mosque. He remarked that Pakistan was born on the 27th night of Ramadan and enjoys divine support from unseen forces. He lauded Army Chief General Syed Asim Munir for not only defending the country’s borders but also contributing significantly to strengthening the economy. The general’s resolute actions have foiled internal and external threats, sending a clear message to India and the world about Pakistan’s robust defense.
Governor Tessori appreciated the selection of participants at the forum, expressing confidence that the team could help improve Pakistan’s banking system. He reiterated the need to transition the country toward an interest-free, true Islamic economic system. “Life may tire us, but we must stand firm because some people are leaning on us,” he said. “We must move beyond our past because living in it breeds despair.” Highlighting the importance of technological advancement, he urged promotion of artificial intelligence (AI), warning that failure to do so would leave Pakistan centuries behind the world. He mentioned ongoing collaboration with Saylani to guide youth towards AI, a venture already progressing successfully.
Governor Tessori remarked that although Pakistan is a free country, the true sense of freedom has faded. People neglect their responsibilities while blaming the government. He stressed, “A country without a strong army can never be strong — the examples of Palestine and other countries are evident.”
Addressing the forum, Head of the Islamic Finance Department at the SECP, Tariq Naseem, said Islamic fintech is playing a key role in resolving financial challenges and must be supported to reinforce the Islamic economic model. He added that microfinance banks now serve seven million customers in Pakistan, many of whom lack access to formal banking, and they need to be brought into the financial system through Shariah-compliant services.
Chairman of the Council of Islamic Ideology, Allama Raghib Hussain Naeemi, reiterated the council’s stance against the interest-based system, saying a comprehensive report has already been submitted and that the Federal Shariat Court’s verdict supports the elimination of interest. He expressed full support for the State Bank’s efforts in advancing Islamic banking.
A former naval chief, speaking at the forum, referenced recent tensions with India, saying that Pakistan’s victory was only possible due to divine help. He stressed that true adherence to Islamic principles would guarantee even greater support from God.
The Governor of the State Bank of Pakistan, in his remarks, said the country’s economic indicators have improved significantly over the past three years. He noted that inflation has dropped to 0.3 percent in April 2025, the lowest in decades, while external debt has decreased by two billion dollars and foreign exchange reserves have increased by three billion dollars. He added that remittances from overseas Pakistanis have risen by eight billion dollars. He said that the policy rate, once at 22 percent, has now been halved and economic activity is showing clear signs of recovery. Imports have stabilized and the current account deficit, which was 17.5 billion dollars in FY22, is now under control.
He also highlighted the global recognition of Pakistan’s Islamic banking efforts, noting that the State Bank has received multiple international awards. As of March 2025, the total assets of Islamic banks in Pakistan have reached 11,300 billion rupees, deposits have crossed 8,400 billion rupees, and the number of Islamic bank branches now exceeds 8,000.
Mufti Muneeb-ur-Rehman stated that according to the Shariat Court’s order, all banks must transition to the Islamic banking system by the end of 2027. Currently, banks have only two years, seven months, and eleven days left to implement this, but there seems to be no significant activity in the government or banking sector regarding this transition.
Maulana Bashir Farooqi, in his brief speech, stated that eliminating the interest-based system by 2027 is essential. Interest is a war against Allah and His Messenger (PBUH), and no one can succeed in such a war. He said that Saylani is collaborating with relevant institutions to promote the Islamic digital economy. Speakers at the conference emphasized the need to eliminate interest from the economy and promote an Islamic financial structure, while also urging investment in artificial intelligence to prepare youth for the future. The forum concluded with a shared commitment to build a stronger, inclusive and fully Shariah-compliant economic system for Pakistan.
