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Pakistani Islamic banks charge 25–30% interest. Mandviwala

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The public is allegedly being duped under the guise of “Islamic banking,” according to the Senate Standing Committee on Finance, which is presided over by Senator Salim Mandviwala. Their concerns regarding the activities of Islamic banks are quite serious.

Salim Mandviwala, the committee chairman, said that Islamic banks, despite their claims to be interest-free, are actually charging far higher rates.

When it comes to borrowing, he disclosed that these banks charge interest rates between 25 and 30 percent, which is significantly more than the 20 percent that regular banks usually charge.

Mandviwala claimed, “The people are being deceived under the guise of Islamic banking,” emphasizing that it doesn’t seem like the State Bank of Pakistan (SBP) has much supervision over these businesses. “Islamic banks are operating without adequate oversight, and those who can take advantage are doing so freely,” he continued.

The public has frequently complained to Mandviwala about the excessive interest rates that Islamic banks impose. A comprehensive briefing on Islamic banking from the State Bank has been requested by the Standing Committee in response to these worries.

As a safeguard against potential exploitation, the committee’s findings have led to calls for increased regulation and transparency in the Islamic banking industry.

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With a loss of 32 paisas, the US dollar is now trading at 277 rupees on the interbank market.

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In the Interbank market, the United States dollar is currently trading at 277 rupees and 63 paise, indicating a depreciation of 32 paise. Yesterday, it reached a closing price of 277 rupees and 95 paise on the Interbank market.

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The price of gold has skyrocketed in Pakistan.

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Pakistan’s gold price recovered on Friday following a sharp drop the day before, mirroring worldwide market patterns.

According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola rose by Rs2,000 in the local market, ending at Rs278,800.

Likewise, the cost of 10 grams of 24-karat gold increased by Rs1,715 to Rs239,026.

With an extra $20 premium, the price of gold increased by $21 on Friday to $2,683 per ounce on the global market as well.

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The PSX-100 index reaches a record high and surpasses 93,000 points.

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Historically, the Pakistan Stock Exchange (PSX) exceeded the 93,000-point threshold for the first time, with the KSE-100 index increasing by 480 points to attain a record high of 93,001 points.

A significant milestone was reached on the final business day of the week, establishing a new record for the nation’s stock market.

Economists ascribe the market’s expansion to expectations of an enhanced economic rating for Pakistan and a favorable perspective on economic reforms. The session commenced positively, with the 100 index initially increasing by 250 points, reaching 92,770 points prior to the day’s zenith. The market concluded the prior day at 92,520 points.

Simultaneously, the Pakistani rupee appreciated as the dollar decreased by 20 paisa in the interbank market, now valued at 277.75 rupees. Economists attribute this enhancement to heightened remittances and a current account surplus, which have strengthened the rupee’s status.

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