ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has established a specialised department to regulate the Islamic finance market.
The Islamic Finance Department (IFD) would carry out the functions of Shariah regulations and compliance, product development, market awareness, Shariah securities market development and international liaison and networking, said a statement on Wednesday.
The SECP is entrusted with regulating a spectrum of Shariah-oriented companies ranging from modarabas, non-bank financial institution, takaful and non-financial firms.
Modarabas are the pioneering Islamic financial institutions in Pakistan followed by the Islamic banks, takaful, Islamic mutual funds and Islamic pension funds.
The total Islamic financial assets of Pakistan have reached over Rs1.7 trillion, around 10 per cent of the total banking assets, and 40pc of which are directly or indirectly regulated by the SECP.