Ahsan highlights Islamic finance’s role in sustainable development
KARACHI: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, on Tuesday emphasized the critical role of Islamic finance in driving sustainable economic growth and addressing global challenges such as climate change.
He wa speaking as the chief guest at the 4th World Islamic Finance Forum, organized by the Institute of Business Administration (IBA) Karachi here Tuesday, that brought together experts to explore the theme, “Islamic Finance, Innovation, Climate Finance and Sustainable Growth.”
Ahsan Iqbal 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.
He stressed that Islamic finance, unlike conventional systems, ties economic activities to real assets and promotes shared risk, social justice, and poverty alleviation, with global estimates indicating that zakat and waqf contributions exceed $1 trillion annually.
Ahsan Iqbal also underscored the growing relevance of Islamic finance in addressing environmental issues, citing the example of Green Sukuk. He pointed out that global issuance of green sukuk surpassed $20 billion in 2023, financing projects in renewable energy, sustainable agriculture, and green infrastructure. He referenced Indonesia’s issuance of $2.5 billion in green sukuk and Malaysia’s leadership in this sector.
The Federal Minister said that Pakistan, which has suffered significant economic losses from climate-related disasters, is now following suit. The government recently announced its first green sukuk worth $500 million, aimed at financing renewable energy projects. Iqbal emphasized Pakistan’s commitment to increasing its renewable energy share to 60 percent by 2030 in line with the United Nations Sustainable Development Goals.
Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal, on behalf of the Prime Minister, congratulated the Pakistan Stock Exchange (PSX) on achieving over 60% growth in 2024.
Speaking at the PSX gong striking ceremony on Tuesday, Ahsan Iqbal lauded the exchange’s performance, stating it showcased Pakistan’s resilience and economic potential.
During his address, Ahsan Iqbal emphasized the importance of four key factors for national development: peace, political stability, consistent policies, and commitment to reforms. He noted that without creating a conducive ecosystem, even the best intentions would be futile. “Pakistan needs these four pillars more than ever,” he stressed.
Reflecting on Pakistan’s long-term goals, Ahsan Iqbal underlined the need to honor the vision of Quaid-e-Azam Muhammad Ali Jinnah and Allama Iqbal as the nation approaches its centenary in 2047. “We cannot afford to lag behind economically,” he said, calling for strategic progress.
He highlighted the shift from the political ideologies of the 20th century to the economic competition of the 21st century.
The minister also announced the forthcoming National Economic Transformation Plan, emphasizing the need for export-led growth and the branding of “Made in Pakistan” products. He noted that no Pakistani company currently exceeds a $2 billion valuation, stressing the importance of connecting with global supply chains for economic survival.
Recounting past achievements, Ahsan Iqbal recalled that when the PML-N assumed office in 2013, the country faced severe crises, including terrorism, energy shortages, and target killings in Karachi. He added that the PML-N restored peace, controlled load-shedding, and advanced the China-Pakistan Economic Corridor (CPEC) project. APP
