The State Bank of Pakistan has directed Islamic banks and financial institutions to adopt new Sharia Standards in business practices approved by the international body of Islamic banking with immediate effect.

The new standards will further strengthen the Shariah compliance framework and harmonize the Shariah practices in the Islamic banking industry developed by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

The Shariah standards are termed Ju’alah and Al-Wakalah Bi Al-Istithmar explain the rules of business for the mortgage and its contemporary applications and investment agency.

The adoption of the standards is in addition to current regulations, other instructions, and directives issued by SBP from time to time.

Source: ProPakistani