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Pakistani Islamic banks charge 25–30% interest. Mandviwala

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7 months ago

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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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E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

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3 days ago

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Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

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With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

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3 days ago

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Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.

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Bulls in the stock market are still going strong.

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3 days ago

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As the bullish trend persisted on the Pakistan Stock Exchange (PSX) on Monday, the KSE-100 index soared beyond the 115,000 level.

The PSX continued its upward trend from the weekend, and the KSE-100 index gained 600 points, reaching 115,048 points in early trading.

The index closed at 114,398 points on Friday, up 685 points.

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