AAOIFI Sharia Standards Review Meeting Held in Pakistan

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) convened its Sharia Standards Review and Translation Committee from July 21-23, 2015, in Islamabad, Pakistan. AAOIFI is renowned globally for setting high standards in Islamic finance, and its Sharia Board is chaired by the esteemed Sheikh Muhammad Taqi Usmani.

This meeting was part of a series aimed at updating English translations and completing translations for AAOIFI’s newly issued Sharia standards, originally approved in Arabic. To date, AAOIFI has issued 54 Sharia standards along with 40 additional standards covering accounting, auditing, governance, and ethics for Islamic financial institutions.

The meeting brought together distinguished Sharia scholars, including Sheikh Muhammad Taqi Usmani (Chairman of AAOIFI’s Sharia Board and the State Bank of Pakistan), Sheikh Nizam Yaqoobi, and Sheikh Essam Ishaq. Dr. Hamed Hassan Merah, AAOIFI’s Secretary-General, expressed gratitude to the State Bank of Pakistan for their support and hospitality. He emphasized the significance of the meeting in advancing the Committee’s objectives and strengthening cooperation between AAOIFI and Pakistan’s Islamic finance sector.

Dr. Merah also indicated AAOIFI’s intention to arrange more events in Pakistan, highlighting future collaboration opportunities. Mr. Saeed Ahmad, Deputy Governor of the State Bank of Pakistan, welcomed the scholars and praised AAOIFI’s efforts. He emphasized that increased collaboration would significantly benefit the Islamic finance industry.

Mr. Zafar-ul-Haq Hijazi, Chairman of the Securities and Exchange Commission of Pakistan (SECP), also lauded AAOIFI’s work and noted SECP’s recent initiatives, including establishing a Shariah Advisory Board.

The meeting was sponsored by Habib Bank Limited and Meezan Bank Limited. Habib Bank Limited (HBL) operates as the second-largest Islamic banking network in Pakistan with 45 branches and around 500 windows. Meezan Bank Limited, the largest Islamic bank in Pakistan, boasts over 430 branches across more than 100 cities.

In a message, Mr. Irfan Siddiqui, President & CEO of Meezan Bank Limited, praised AAOIFI’s role in establishing Islamic finance standards and highlighted the rapid growth of Islamic finance in Pakistan, which now constitutes approximately 12% of the total banking industry.

Mirza Saleem Baig, Head of Islamic Banking at HBL, noted that Islamic banking offers significant inclusion opportunities for Pakistan’s population. He emphasized the importance of AAOIFI’s contribution to global Islamic finance standards and expressed pride in hosting such a significant conference.