Hamdard University – Seminar on Islamic Banking & Finance
Emerging Trends and Future Career Opportunities for Youth
We arrived at 8.30am at Pearl Continental Hotel, Karachi. Post registration, we were warmly welcomed by Mufti Wasie who outlined the plan for the event and kindly seated us. The event consisted of multiple respected personalities from various banks around Pakistan, Ulama and students from Hamdard University. The venue was lovely and spacious, even the table décor was beautiful.
We started around 9.30am and Mufti Wasie gave a short introduction to the event, and the topics to be covered as well as a panel introduction.
The event began with recitation of the verse of Riba from the Holy Quran by Mufti Noman Shaikh. We then all stood for the National Anthem and pondered over the greatness of our country, Pakistan.
In this piece, I will outline the key points made by each speaker at the event:
Dr Amir Adam, Associate Dean of Hamdard University
- Welcome on behalf of HIMS
- Emphasis on the efforts of Hamdard University to spread awareness of Riba and how to eradicate it from society, a massive target to eradicate completely in 5 years.
- Thoughts and duas for our brothers and sisters suffering in the floods
The myth that Islamic Banking and Islamic Finance are the same, was addressed clearly.
A great quote by Allama Iqbal as follows, highlighting the importance for us as a nation to leave our comfort zone and adapt to the surroundings:
Aayen-e-Nau Se Darna, Tarz-e-Kuhan Pe Urna
Manzil Yehi Kathan Hai Qoumon Ki Zindagi Mein.
To be afraid of the new ways, to insist on the old ones
This is the only difficult stage in the life of nations.
Mufti Ibrahim Essa – Darul Uloom Jamiah, EFU Life Hemayah Takaful
- The difference between Takaful and insurance was highlighted clearly
- Insurance is recognised today for houses, cars, investments, properties, amongst others
- These facilties exist in Pakistan, but the process between how takaful is offered differs massively to insurance
- The mindset in insurance is that if something goes wrong, I will claim money to save myself.
- The mindset in Takaful is that the pool of money is available for everyone to use as and when they need it, i.e. Imdaad e Bahami
- In takaful, the risk is shared compared to transferred in insurance.
- The people looking after the money in the pool are merely caretakers. Our efforts should lie today in educating each other on the concept of helping each other when needed.
- Often the misconception with Islamic Finance is that if it didn’t exist at the time of Nabi SAWS, then it is a new concept and therefore wrong.
- In fact, this is completely wrong. Islam is not a religion of conditions (soorat). Rather it is a religion of principles (usool)
- For example, the stock exchange didn’t exist 1400 years ago. That doesn’t mean we refuse it or reject giving advice regarding it. Rather Ulama today take extra care to ensure it is acting in line with the Shariah.
- Takaful in history – a tribe used to gather dates from amongst the people during the time of floods. They then used to take however many dates needed and then distributed the rest.
- In terms of career opportunities, family takaful is a great place to enter and get started.
- As a closing statement, Allah gave all Prophets the command to eat purely and do good deeds. The same command is for us too. For those about to start their career, the advice is to simple be pure.
Mr Raheel Qamar – NBFI & Modaraba Association of Pakistan
- Islamic finance is attractive for non-Muslims due to the fair treatment towards all parties.
- The products within Islamic Finance are client specific and are distributed in a way to meet the needs of all involved.
- In terms of career opportunities, it is our duty to convert conventional work to meet the requirements of an Islamic way of life.
- Closing remarks – learn Islamic Finance, believe in it, and let’s work together to turn this country into an Islamic hub
Zaigham Mahmood Rizvi Sahab – Chairman PM Housing Program
- We often talk about everything that is haram but we don’t offer the halal alternative.
- Professor Khursheed Ahmed in Islamabad was a great guide
- Once we define what is halal, then the journey starts to act upon it.
وَمَنْ يَتَّقِ اللهَ يَجْعَلْ لَهُ مَخْرَجًا وَيَرْزُقْهُ مِنْ حَيْثُ لَا يَحْتَسِبُ وَمَن يَتَوَكَّلْ عَلَى اللهِ فَهُوَ حَسْبُهُ
- Allah gives from where you least expect it (65:2-3)
- When you sell a bank, don’t sell for money, sell for trust.
- When Nabi SAWS presented deen to others, he presented his own personality first, then the religion. He was known as Al-Amin before the revelation even came. Demonstrate then preach is the key
- Truly all thanks goes to Justice Taqi Usmani Sahab, may Allah protect him.
- The responsibility on his signature speaks a thousand words, and he is respected immensely around the world.
- In a book on the history and evolution of banking in Pakistan, there should be a chapter on Mufti Sahab, may Allah protect him.
- The debate of Islam vs banking is actually invalid as they are both vital. The front counter is about banking and the back office is about Islam.
- Islam cares about purpose, you have a fundamental right to ask what and why something is occurring. Islamic Finance is prudent banking, taking due care.
- The whole aim is to eliminate risk completely.
- Allah has defined trading as halal, after this, haram will automatically be defined, in that anything that isn’t trade is halal
- Lure people towards the good and they’ll understand what to avoid as part of the bad.
- E.g., once you define nikkah, you’ll see what zina is
Ahmad Khan – TheZealCorporation, Canada
- The institute works on Islamic screening, in particular with NUMA Global Ltd UK, Yasaar Research and Usmani & Co.
- They screen Islamic and Pakistani companies as well as offer AML and KYC services.
- There is a focus on REITs and multi asset transactions, in that Dolmen Mall Clifton is on a REIT, since it is owned by investors and mixed shareholders.
Amir Ali – CEO Bank Islami
- The aim is to eliminate riba and uncertainty (Gharar)
- In conventional economics, in line with Adam Smith’s theory, land, labour and capital made up society. Goods are used to produce other goods in a capital economy
- In islam, money is only a medium of exchange, no return is allowed on money.
- The lack of understanding needs to be eradicated – we need to make Islamic Finance accessible to the mass market
- Muhammad bin Qasim came in 712 AD to Pakistan, when everything was quiet. Muslims ruled civilisation due to their technological innovations in every field, during the early 1000s.
- Even if you take an example of Artificial Intelligence, following it back, it is based on statistics, then based on algebra, which is from Muslim Inventions.
- Europe took over after the dark ages and Muslim inventions were forgotten about.
Ahmed Ali Siddiqui – Meezan Bank, Head of Shariah Compliance
- Ibadat ki qubooliyat ki shart hai ke rizq halal ho
- The pre-requisite for the acceptance of worship is pure income.
- Islamic Finance requires the purification of income and expenses
- We all know that interest is haram
- But once we finish studying the theory, we start doubting this command.
- Our efforts need to be in the right direction, so that we don’t incorrectly exert effort into a haram field
- The growth of Islamic finance is evident in so many areas – leases, fintech, P2P, asset management, mudarabah etc
- UK Central Bank, known as the mother of banks started offering Islamic Finance. When asked why, the answer was that we have 3-4 million Muslims in this country, it is our responsibility to offer them alternatives in line with their beliefs.
- Quaid e Azam, and the Pakistani Constitution both clearly outline the importance of eliminating riba
- Growth of Islamic Finance in Pakistan is high on the rise, which means there is a dire need of multiple roles in the Islamic Banking industry
Faisal Shaykh – CEO Faysal Bank
- In order to achieve success, you need the spiritual power on your side.
- Faysal bank conversion is currently recorded as the largest bank conversion into Islamic Finance in the world, recognised by AAOIFI too, with a record 211 branches to convert.
- Named after King Faisal from Saudi Arabia, who became king in 1964 and was assassinated in 1975
- Post 9/11, the bank diverted to a conventional bank, and finally after some years, the conversion process started in 2014
- Most important factor in the conversion of a bank is to maintain the trust of the people, and follow these 3 points:
- Not too fast
- Ensure profitable conversion
- Maintain bank momentum
- In the conversion process, HR and governance are both vital.
- From a career perspective, Shariah and business knowledge both are needed to support a successful conversion.
- The biggest lesson is to appreciate the first step someone takes in coming towards you to change and convert, which our society lacks greatly. It is important to give the benefit of doubt.
- Conversion is proof that Islamic Banks need tawakkul in Allah that it is absolutely possible.
- It is a clear example that you can see Allah’s help with open eyes so clearly when a conversion is successful with a pure intention.
- Ghaltiyan hojati hain laikin un ko sudhari bhi jaate hain.
Mufti Irshad – SSB Bank Islami Pakistan
- Criticism is always received on an idealistic model, but is often a means to leave a process broken
- A quote by Humayoun Dar is that ‘those who criticise just want to maintain the status quo’
- Another important point is that man is lucky if his profession is his passion
- E.g. for a book lover to become a librarian is a great role.
- The added bonus is when you have your profession and passion and reward all in one place.
- In order to justify that which is wrong, man finds multiple excuses
- Muslims as a whole have responsibilities to help the country, it isn’t just the role of the Ulama
- An example of determination and focus is of Sir Syed Ahmed Khan who wished to set up Aligarh University. When he begged from money from someone, he was promised funds once he came and danced with ghungroo in the bazaar. He went away and came back with ghungroo and took the money. The man was embarrassed and ashamed for his request and asked for forgiveness. Sir Syed Ahmed Khan said I was only interested in the money for the university, whether you gave that to me easily or forced me to dance.
- The lesson is that nothing should come between you and your end goal, do whatever it takes to reach your final destination.
The event was fantastic Ma Sha Allah. While all the speakers were fantastic and made such important points as food for thought, I especially enjoyed listening to Zaigham Sahab, Faisal Sahab, Mufti Irshad and Amir Ali. I also appreciated the works of Aysha Akhtar in marketing and other staff and volunteers behind the scenes who made this event successful. The venue was lovely and the food was also very tasty. The souvenirs given to the panellists were very honouring and the event was very well organised and managed by Mufti Wasie. The launch of the new programs from HIMS was also very exciting. It was a perfect topic and the content was spot on, ideal for this generation during this time, and the advice the panellists gave was so useful and helpful.
May Allah accept the efforts of all those involved in making this event a success, Aameen.