Pakistan has a major opportunity to expand its presence in the global Islamic finance market by developing new Shariah-compliant products, improving regulations and training professionals with expertise in both finance and Shariah principles.

The remarks were made by Yousef Hassan Khalawi, Secretary General of the Islamic Chamber of Commerce and Development, during a Securities and Exchange Commission of Pakistan (SECP) talk on the future of Islamic finance.

Khalawi said Pakistan already has several advantages that could help it capture a larger share of the global Islamic economy. These include its large Muslim population, overseas Pakistani community, expanding Islamic finance industry and established pool of financial professionals.

He said the industry needs to think beyond conventional Islamic banking and develop products that can compete in both local and international markets.

Fintech, in particular, could open new opportunities by making Shariah-compliant financial services easier and cheaper to access.

Khalawi also argued that Islamic finance should have a wider economic and social impact rather than simply provide alternatives to conventional financial transactions.

One potential area is Waqf financing. He said listed Waqf structures could bring together even small contributions from individuals and channel them into projects such as schools, hospitals and infrastructure through transparent and professionally managed arrangements.

Agriculture is another area where he sees significant room for growth. Pakistan could develop specialized Shariah-compliant financing products for farmers and the agriculture sector, supported by professionals with the right expertise.

The discussion also covered Qard Hassan, an interest-free form of lending. Khalawi highlighted fintech as a way to make such financing more accessible while reducing the cost of delivering it.

However, he said the industry still faces challenges in standardizing Shariah practices and developing enough professionals who understand both Islamic principles and modern finance.

Building that expertise, along with stronger regulatory frameworks and more innovative products, will be important if Pakistan wants to move beyond its domestic Islamic finance market and compete for a larger share of the global industry.