The State Bank of Pakistan (SBP) has announced the adoption of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shariah Standards to enhance the Shariah compliance framework within the country’s Islamic banking sector. This move aims to harmonize Shariah practices across the industry.
In a circular issued on Tuesday, the SBP stated that the adoption of these standards is effective immediately, subject to certain clarifications and amendments. The specific standards adopted include:
- Shariah Standard No. 36: Impact of Contingent Incidents on Commitments
- Shariah Standard No. 37: Credit Agreement
These standards are in addition to the existing regulations, instructions, and directives issued by the SBP. The central bank emphasized that non-compliance with these instructions could result in penal action under the relevant provisions of the Banking Companies Ordinance 1962.
