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Pakistan regulator asks stock exchange to promote Shariah-compliant services in bid to eliminate interest

Pakistan regulator asks stock exchange to promote Shariah-compliant services in bid to eliminate interest
A stockbroker walks past share prices on a financial market board during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on April 9, 2025. (AFP/File)
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Updated 20 min 43 sec ago

Pakistan regulator asks stock exchange to promote Shariah-compliant services in bid to eliminate interest

Pakistan regulator asks stock exchange to promote Shariah-compliant services in bid to eliminate interest
  • Islamic institutional investors asked to route at least 20 percent of securities trading business via Shariah-compliant brokerage houses
  • Industry stakeholders welcome move as “positive step” to transform financial system into an Islamic one by eliminating interest or “riba”
Updated 20 min 43 sec ago
Ismail Dilawar

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has asked the country’s stock exchange to promote Shariah-compliant brokerage services in equity trading, the regulator’s spokesperson Affan Haider said on Wednesday, saying the move was expected to help Pakistan eliminate interest from its economy by 2027.

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest by 2027, maintaining that Islam prohibited it in all its forms and manifestations. The FSC determines whether Pakistani laws comply with Islamic law or not.

Apex regulators from the SECP have asked Islamic institutional investors, including Takaful (insurance) operators, mutual funds and others, to route a minimum of 20 percent of their business of trading securities through Shariah-compliant brokers by June 2027.

“(The) PSX will work in close coordination with market participants to develop a Shariah-compliant trading mechanism and undertake market awareness initiatives to promote understanding and adoption of Shariah-compliant brokerage services,” Haider said.

He added the SECP had sent notices recently to the Pakistan Stock Exchange (PSX), the Central Depositary Company (CDC) and Shariah-compliant institutional investors in this regard.

According to SECP data, more than 51 percent of Pakistan’s listed equity securities are Shariah-compliant, representing about 60 percent of the country’s total market capitalization. These Islamic securities consistently make up around 80 percent of the PSX’s daily trading volume.

“This [move] demonstrates a robust market foundation and clear investor demand for dedicated trading and brokerage services, tailored to Shariah-conscious investors,” Haider said.

Last week, the SECP directed the PSX and CDC to enhance or incentivize the offering of Shariah-compliant intermediary services in Pakistan’s capital market.

“The core objective of this initiative is to facilitate the gradual transformation of the financial system with a view to establishing a comprehensive and inclusive Islamic finance ecosystem,” the SECP spokesperson explained.

Haider said each SECP-regulated Islamic institutional investor would be required to include at least one Shariah-compliant broker in its approved panel of brokers.

The SECP will encourage conventional brokers to establish Shariah-compliant brokerage services either by forming subsidiaries or through window operations.

‘POSITIVE STEP’

Industry stakeholders welcomed the move as a “step forward” for the government in implementing the FSC’s deadline.

“This is a positive step because, if we let’s say have to convert our financial system into Islamic financing, we would also need to convert our capital market,” Ahmed Ali Siddiqui, head of the Shariah compliance department at Meezan Bank, said.

“The Sukuk and share market must be converted too,” he added.

He said establishing dedicated brokerage houses would attract investors who want to avoid interest-based share trading.

“The biggest challenge our stocks market is facing right now is that it lacks Shariah credibility in the eyes of many investors,” Siddiqui said. “We don’t have Islamic brokers at our stocks market.”

He said Zahid Latif Khan Securities (Private) Limited was presently the only licensed Shariah-complaint brokerage firm. However, he said regulators would now start issuing more such licenses given the expected increase in demand.

“Many stockbrokers would start opening their Islamic windows as some of the big brokers have already started thinking about opening Islamic windows to start with the conversion process,” Siddiqui explained.

Muhammad Shoaib, chief executive officer at the Shariah-compliant Lucky Investments Limited company, said the SECP was trying to lure PSX, CDC and stockbrokers toward the Islamic financial system.

“However, a major component of this journey should be to first make the country’s banking system fully Shariah-compliant, which would make it easier for listed companies, brokers and all products of the stock exchange,” Shoaib said, whose company is a subsidiary of YB (Lucky) Group. It is managing Rs88 billion ($312 million) worth of assets.

Shoaib plans to more than double this amount to Rs200 billion ($710 million) by the end of 2026.

Lucky Investments raised the Rs50 billion ($178 million) funding through an initial public offering from the PSX in April, reflecting a growing appetite for Islamic financing in the country.

Topics: Pakistan Stock Exchange (PSX)

Pakistan agency says over 1,200 cases filed under new cybercrimes law, journalists included

Pakistan agency says over 1,200 cases filed under new cybercrimes law, journalists included
Updated 10 September 2025

Pakistan agency says over 1,200 cases filed under new cybercrimes law, journalists included

Pakistan agency says over 1,200 cases filed under new cybercrimes law, journalists included
  • Ten cases were registered against journalists on charges such as using hate speech against state institutions, spreading “fake news” on social media
  • Pakistani government officials have defended Prevention of Electronic Crimes Act, saying it protects people’s data and integrity on digital platforms
Updated 10 September 2025
Waseem Abbasi

ISLAMABAD: Pakistan’s government has registered over 1,214 cases under a cybercrime law this year, out of which 10 have been filed against journalists, the director-general of a national cybercrime agency said on Wednesday, amid fears by the opposition that the law would be used to punish critics.

Pakistan’s Prevention of Electronic Crimes Act (PECA) was originally enacted in 2016, but an amendment bill passed in January 2025 expanded its scope by broadening the definition of “fake news” and criminalizing defamation against government officials.

The law also established a new social media regulatory authority to oversee digital content and a cybercrime agency with the power to prosecute violations.

“So far, a total of 1,214 cases have been registered by the National Cyber Crime Investigation Agency (NCCIA) this year, out of which 10 have been filed against journalists,” DG NCCIA Waqar-ud-Din Syed told the Senate Standing Committee on Information.

The NCCIA is an independent institution that has the authority to investigate and act against all cyber-related offenses across the country.

The committee was informed that out of a total 1,214 cases, 611 were registered by the NCCIA for financial fraud online, 320 for harassment through cyberspace, 174 for promoting religious hate speech, 55 for defamation and 19 for the possession of illegal SIMs. Seven of these cases were registered for child pornography.

Cases against journalists Sabir Shakir, former anchor Moeed Hassan Pirzada, and investigative journalist Ahmad Noorani, have been registered for allegedly spreading hate speech against state institutions. All three regularly criticize the incumbent government and Pakistan’s powerful military.

A case against journalist Farhan Gohar Malik has been registered on charges of spreading propaganda against state institutions and disseminating fake news on social media. Another journalist, Khalid Jameel, was booked under the PECA law for allegedly using hate speech against state institutions. However, he was later cleared of the charges by a local court.

Former army officer and YouTuber Aadil Raja, and former anchor Imran Riaz Khan were booked under PECA law for their alleged involvement in “anti-state activities.” Journalist Shahzad Rafique was booked for committing alleged defamation while reporter Muhammad Waheed was booked under the controversial law on allegations of using hate speech against state institutions.

Many of these journalists are accused by the government of being biased in favor of former prime minister Imran Khan. Most of these journalists and vloggers, who have fled the country, deny the accusations.

Syed Ali Zafar, who heads the senate standing committee, expressed fears the law could be misused against the government’s critics. Zafar is a prominent Pakistani lawyer and is a member of Khan’s Pakistan Tehreek-e-Insaf (PTI) opposition party. The PTI accuses the government and military of harassing its supporters. Both strongly deny the charges.

“The opposition has no problem if the law is used against legitimate cybercrimes like hate speech, pornography or crimes against the state,” Zafar noted during the briefing.

He said the PECA law should not be used against anyone who criticizes the government during the ongoing floods crisis.

Meanwhile, Waheed told Arab News that the Federal Investigation Agency (FIA) had misrepresented his posts on social media platform X, saying he was only quoting Baloch politician Akhtar Mengal’s statements.

“I was wrongly charged for an X post that was actually a quote of a Baloch leader,” he said.

Pakistani journalists have long complained of increasing state pressure on traditional and digital media in Pakistan, which is ranked 152nd out of 180 countries on the press freedom index of Reporters Without Borders (RSF), a media watchdog that promotes and defends press freedom.

Pakistani authorities banned social media platform X in the recent past. Pakistani officials, meanwhile, have defended the PECA law, saying it protects people’s integrity and data on social media platforms.

Pakistan assumes chair of SCO’s permanent body on counterterrorism

Pakistan assumes chair of SCO’s permanent body on counterterrorism
Updated 10 September 2025

Pakistan assumes chair of SCO’s permanent body on counterterrorism

Pakistan assumes chair of SCO’s permanent body on counterterrorism
  • Regional Anti-Terrorist Structure is SCO’s counterterrorism arm which tackles separatism and extremism
  • In its capacity as chair of SCO RATs, Pakistan will foster regional cooperation against “terrorism,” says FO
Updated 10 September 2025
Arab News Pakistan

ISLAMABAD: Pakistan has assumed the chair of the Regional Anti-Terrorist Structure (RATS) body of the Shanghai Cooperation Organization,(SCO) the foreign office announced on Wednesday, saying the role would allow Islamabad to foster regional cooperation against “terrorism.”

RATS SCO, founded in 2002 and headquartered in Tashkent, Uzbekistan, is a permanent organ of the SCO alliance which serves to promote cooperation among members states against “terrorism,” separatism, and extremism.

The foreign office said Islamabad assuming the counterterror body’s chair was a reflection of the confidence that SCO member states have in Pakistan’s efforts and contributions toward regional peace and security.

“In its capacity as the chair of SCO-RATS, Pakistan will work toward fostering regional cooperation against terrorism, in line with shared priorities, guided by the Shanghai Spirit of mutual trust, equality and shared responsibility,” the foreign office said.

It said as the body’s chair, Pakistan will host events on key domains such as cyber counterterrorism, information operations, border security, countering terrorist financing, and capacity-building to deepen collaboration.

Pakistan has frequently said it has lost 90,000 lives due to scores of militant attacks over the past couple of decades. Prime Minister Shehbaz Sharif said earlier this month Islamabad has suffered economic losses worth $152 billion due to “terrorism.”

“As a frontline state in combating terrorism, Pakistan continues to make unparalleled sacrifices to ensure safety and security not only of its own people but the region and beyond,” the statement said.

“Pakistan will continue to work with international and regional partners to advance collective efforts against terrorism, in line with the principles of the SCO, international law and the United Nations Charter.”

The development takes place as Pakistan battles twin insurgencies in its northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces. Islamabad blames the Afghan government for not taking action against the Tehreek-e-Taliban Pakistan (TTP) militants, alleging frequently that they operate from Afghanistan’s territory. Kabul denies the allegations.

Pakistan also accuses India of arming and funding militant groups in Balochistan, where separatist militants demand independence from the state. New Delhi rejects the allegations and accuses Islamabad of fueling insurgency in the part of disputed Kashmir it administers.

Topics: Pakistan Army

Pakistan announces lifting years-long ban on new gas connections

Pakistan announces lifting years-long ban on new gas connections
Updated 10 September 2025

Pakistan announces lifting years-long ban on new gas connections

Pakistan announces lifting years-long ban on new gas connections
  • Pakistan banned new connections for domestic use in 2021, citing depleting gas reserves in country
  • Pakistan says will issue new Re-Gasified Liquefied Natural Gas connections for domestic consumers
Updated 10 September 2025
Muhammad Ibrahim

ISLAMABAD: Pakistan's government has decided to lift its years-long ban on new gas connections for domestic use, Petroleum Minister Ali Pervaiz Malik said on Wednesday, saying authorities would issue Re-Gasified Liquefied Natural Gas (RLNG) connections for domestic use.

Pakistan's government announced it was banning new gas connections in 2021, citing rapidly depleting gas reserves in the country. This forced users to switch from piped gas to other alternative sources of fuel for cooking and heating purposes, such as Liquefied Petroleum Gas, (LPG), which is more expensive.

Speaking to reporters at a news conference, Malik said the government was mindful of accidents such as explosions due to gas leaks and substandard cylinders, and of the difficulties people faced in having gas cylinders refilled.

"Due to all of these things and at the people's strong insistence, the prime minister and the government of Pakistan have decided that RLNG, which is imported gas, its new connections will be issued," Malik said.

The minister said that the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGC) will entertain people's applications for new gas connections after the cabinet issues a notification in this regard.

Malik said RLNG is more expensive than local gas but said it was still 30-35 percent cheaper than LPG.

"This means that inflation, regarding which the government of Shehbaz Sharif has controlled through untiring efforts, people will get some more support on it," the minister said.

Malik said the prime minister was mindful that RLNG is expensive compared to domestic gas, adding that the government would try to tackle Pakistan's energy crisis.

"For the discovery of local gas, we have completed one bid round," he said. "The second bid round will be completed soon. Companies from around the world, be it [from] our friend Turkiye, our friend China or our friend America, we will bring all these companies and try to utilize all the resources of on-shore and off-shore gas."

The development takes place after the Pakistan Petroleum Limited (PPL), one of the country's leading oil and gas exploration and production companies, said it has discovered "significant" oil and gas reserves in the Attock district of Punjab last week.

Earlier in February, Mari Energies, a Pakistani hydrocarbon exploration firm, discovered new oil and gas reserves in the northwestern Khyber Pakhtunkhwa (KP) province, with initial tests suggesting a flow of 12.96 million standard cubic feet per day (MMSCFD) of gas and around 20 barrel per day (bbl/d) of condensate.

Pakistan buys sorghum grain from US after floods, traders say

Pakistan buys sorghum grain from US after floods, traders say
Updated 10 September 2025
Reuters

Pakistan buys sorghum grain from US after floods, traders say

Pakistan buys sorghum grain from US after floods, traders say
  • European traders estimate 240,000 to 300,000 metric tons of sorghum grain bought by Pakistani buyers
  • Traders say sorghum was bought as substitute to corn in poultry feed following recent heavy rains, flooding
Updated 10 September 2025
Reuters

HAMBURG: Buyers in Pakistan are believed to have bought about five shipments of the grain sorghum from the United States after serious floods damaged Pakistan’s crops, European traders said on Wednesday.

The precise tonnage was unclear but trader estimates were about 240,000 to 300,000 metric tons. Shipments were said to be between October and December.

Estimated prices were around $260 a ton cost and freight included (c&f) free out.

Traders said they believed the sorghum was purchased as a substitute to corn in poultry feed following recent heavy rains and flooding which damaged Pakistan’s grain crops.

The heavy suspected crop damage means more import demand from Pakistan for grains including wheat is seen as possible, traders said.

Pakistan says stands with Qatar after Israeli attack, denounces ‘barbarism’ in Palestine

Pakistan says stands with Qatar after Israeli attack, denounces ‘barbarism’ in Palestine
Updated 13 min 56 sec ago

Pakistan says stands with Qatar after Israeli attack, denounces ‘barbarism’ in Palestine

Pakistan says stands with Qatar after Israeli attack, denounces ‘barbarism’ in Palestine
  • Israel struck a civilian neighborhood in Doha in bid to kill Hamas political leaders
  • Pakistan requests UN Security Council meeting to discuss Israel’s attack on Qatar
Updated 13 min 56 sec ago
Falak Mahmood Khan

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday reaffirmed Pakistan’s support for Qatar after Israeli airstrikes hit a civilian neighborhood in Doha to target Hamas leaders, saying his government immediately condemned the attack.

Qatar has played a central role in efforts to mediate peace in Gaza, allowing Hamas’ political bureau to operate from its territory as part of negotiations.

Hamas confirmed after the strike that Israel had sought to kill its negotiators, in an attack that left at least six people dead, including a Qatari security guard.

“Yesterday, in Qatar, Israel once again launched an attack, a barbarity, against a sovereign country,” Sharif said during his cabinet meeting. “I believe that no matter how much it is condemned, it will not going to be enough.”

“I think that the blood that is being shed in Palestine, and the innocent children, young people, sisters, mothers and elders, who are being martyred, I believe not just in contemporary history but in the history of the world, there is no other example of such barbarity, cruelty and oppression,” he continued.

Sharif said Deputy Prime Minister Ishaq Dar immediately issued a statement after the attack, adding he himself spoke to the Emir of Qatar as well to assure him of Pakistan’s solidarity.

“He thanked the people of Pakistan, the government, and everyone for taking a stand in this difficult time,” he said while referring to the Qatari leader.

PAKISTAN REQUESTS SECURITY COUNCIL MEETING

Separately, Dar said Pakistan, Algeria and Somalia had requested an emergency meeting of the UN Security Council in light of Israel’s attack on Qatar.

He said Pakistan had also called on the UN’s Human Rights Council in Geneva, on behalf of the Organization of Islamic Cooperation (OIC) and together with the other GCC countries, to convene an urgent debate to discuss Israel’s “brazen attack” on Doha.

The Pakistani deputy prime minister said Islamabad welcomed Qatar’s decision to host an Extraordinary Arab-Islamic Summit in Doha on Sept. 15, adding that it had formally conveyed to the OIC Secretariat Pakistan’s readiness to co-sponsor and co-convene the summit.

Israel’s attack takes place amid its military operations in Gaza. More than 64,600 people have been killed in the Palestinian territory since Israel launched its military campaign in October 2023.

Qatari officials denounced the strike as a “criminal attack” and a “flagrant violation” of international law that endangered the security of both Qatari citizens and foreign residents.

Israeli Prime Minister Benjamin Netanyahu said the assault was a “wholly independent Israeli operation” for which his government took “full responsibility.”

Topics: Pakistan Qatar ties Hamas

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